4 ms·
If depositors take a haircut, what incentives could smaller banks offer in order to remain competitive with GSIBs for business deposits? Higher rates seem like
by tqi 4y ago
If depositors take a haircut, what incentives could smaller banks offer in order to remain competitive with GSIBs for business deposits? Higher rates seem like it would just increase risk.
- mark_l_watson 4y agoSmaller local banks and Credit Unions are great! Just don’t keep more than $250K in any one of them. The governance of Credit Unions tends to be very transparent, at least for the two that my family uses. Seriously, you are promoting giving business to the major Wall Street banks? I would argue this is against your personal long term interests.
- tqi 4y agoAgree that for individuals they are great! But for companies with more than 250k in cash, I would think that the incentives to keep your treasury "safe" would drive you toward banks that you believe are too big to fail?
- mark_l_watson 4y agotrue enough!