Why Big Banks Offer Lower Deposit Rates—and Why It Matters
Nov. 29, 2024
This podcast explores the hidden dynamics of deposit pricing in the banking industry, revealing why large and small banks offer different deposit rates. It delves into how customer preferences, bank technologies, and geographical demographics shape deposit behaviors, debunking myths around pricing power and market concentration. This episode uncovers how liquidity services and rate elasticity influence your bottom line.
The is based on the paper by Adrien d’Avernas (Stockholm School of Economics), Andrea L. Eisfeldt (UCLA), Can Huang (Gies College Business), Richard Stanton and Nancy Wallace (Haas School of Business).
Note: This is an AI-generated audio