Capital Markets Examiner School, Providence, RI

Increase in NMD

 Depositors have moved away from long term products as rates remained at historically low rates

 Significant changes in technology, demographics, and competition since these deposits came into the banks

Repricing Betas

 Deposit Repricing Betas have many names  Betas

 Repricing Betas  Pass Thru Rate  Price Sensitivity

 Percentage of a market rate increase that is applied to a deposit account type

 Beta = Account Rate Change/Market Rate Change