With the dramatic increases in bank interest expense in recent quarters, you might be curious about how the industry's quarterly costs compare to the last time Fed Funds were at a comparable rate. With Effective Fed Funds at 5.33% today compared to the third quarter of 2007 at 5.26%, what do you think were the differences between 3Q2023 and 3Q2007 in specific account types were? Here's what the data tells us: From the UPBRs for the One Quarter Annualized for quarter 3... Transaction Accounts - 2007 @ 1.41% vs 2023 @ .96%. Other Savings Accounts - 2007 @ 2.50% vs 2023 @ 1.33% Time Deposits - 2007 @ 4.84% vs 2023 @ 3.20% Total Interest Bearing Deposits - 2007 @ 3.80% vs 2023 @ 1.98% Here is a link to the two UBPR reports. Take a look for yourself. https://lnkd.in/gEnqPfQf The precedent seems to indicate that we still have some major adjustments ahead of us. What do you think? #bankingindustry #interestrates #costs #profitability #strategy
