The question “Who owns deposit growth?” became one of the more interesting parts of this week's discussion. And for many institutions, the answer is surprisingly unclear, despite deposit growth becoming increasingly important given the industry's near-term and long-term funding challenges.
DCG’s models suggest many institutions still have several quarters of positive momentum ahead. Beyond that, however, net interest income begins to plateau at many organizations, which creates an important strategic inflection point.
The focus this week was on evolving opinions and market developments regarding the potential acceptance of fair value hedge accounting using interest rate caps.
Continued stagnant loan growth, higher competition for deposits, shrinking margins, and ultimately lower levels of ROA and ROE throughout the banking industry mandate the development of meaningful and cost-effective funding game plans to support growth requirements.
Institutions of all shapes and sizes are implementing proactive balance sheet strategies to reduce potential exposures, not because they are guessing what will happen to rates, but because they are implementing to be ready regardless.
Capital planning doesn’t have to be complicated to be effective. The goal is a repeatable process that looks beyond the annual budget, considers what could change, and outlines what to do if capital were under pressure.
As institutions plan for 2026, the challenge is how to balance current earnings momentum with disciplined scenarios and a realistic view of potential risks ahead. Here are some key considerations.
There is a massive tug-of-war between trying to lower deposit rates and protecting deposit relationships. Here are four ideas to help find the sweet spot in the struggle and gain an edge in deposit management.
Even the most engaged ALCO meetings can fall short of their goals if they can’t translate their best intentions into real strategy. Successful ALCOs follow their data’s lead and take a more structured approach to consider the impacts.
On 9/17/25, the Fed announced a 25bps rate cut – its fourth since the tightening cycle ended in mid-2023, but the first since last December. It comes at a time of continued uncertainty regarding the forward paths of employment, inflation, and economic activity.
