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 podcast is based on the paper "The Deposit Business at Large vs. Small Banks" 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