A new analysis of market rates Insight (MRI, www.marketratesinsight.com), the leading research firm that tracks the rates on deposits, loans and fees to help financial institutions Price accuracy shows that banks reduce deposit rates on CDs and money market accounts after the FDIC special assessment. A month before June 30, when the FDIC special assessment entered into force, there was no change in aggregate national average rates on deposit products (0.00), but the average national APY declined 10 bps (0.10) on July 31.
"The timing and the number of changes in the national average deposits makes it very likely that underwriting agencies FDIC special assessment with a low cost of funds on deposit products," said Dr. Dan Geller, Executive Vice President for market rates insight. On May 22, 2009 FDIC Board of Directors adopted a final rule imposing a special assessment of 5 basis points on each insured depository institution's assets minus Tier 1 capital as of June 30, 2009, which is the date that the deposit rates began their slump. In addition the number of special assessment for any agency, which was set at a maximum of 10 basis points, corresponds well with the cumulative decline nationwide average from June 30, 2009.
For more than two decades of market rates Insight (MRI) helps subscribers Price accuracy, providing savings banks, credit unions and other financial institutions with the exact market for deposits, loans and fees. MRI uses deposit surveys, mortgage and consumer loan surveys, research, collection, scanned and Declaration, notification of new products and market share and money Fund intelligence reports to allow subscribers to a profitable response to new trends.
Market rates Insight is located in San Anselmo, California. For more information, see www.marketratesinsight.com.
Contact:
Dr. Dan Geller
Market Insight rates
415-448-8813
Dan.Geller@MarketRatesInsight.com
Tom Wolfe
Market Insight rates
(415) 259-5638
Tom.Woolf@marketratesinsight.com