Rate risk modellers relieved as EU deposits stay sticky
Banks feared retail deposits would be flightier than during previous periods of rate hikes
European risk modellers may be able to soften their assumptions about the behaviour of retail deposits, as the rise in interest rates since 2022 appears to have affected depositors less than originally feared. This was the first sustained rate hike cycle for well over a decade, and the first since the widespread adoption of digital banking.
“It’s not easy to model customer behaviour in 2022 when
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