How Sticky are Your Core Deposits?

April 2015

Chatham Financial - Sticky Deposits

In this FI Bulletin, we discuss how FIs can assess the stickiness of their deposits and what they can do to make them stickier. We also look at ways that FIs can protect themselves against the rising cost of non-core funding.

At a recent regional bank investor conference, management teams were asked to defend the “stickiness” of their core deposits. One CFO responded that his bank’s deposits were so sticky that they were nearly “caramelized”. That is truly an enviable (tasty?) position, but the reality is changing market conditions are creating real concerns for FI management teams and present a battle that will put core deposit stickiness to the test.

Download This Bulletin