Deposits latest publications
The combination of weak economic activity and high short-term interest rates maintain low growth over demand deposits, the main component of traditional deposits.
During the 1Q19, the fall in economic activity had a significant influence on traditional deposits, whose nominal annual growth of 7.8% (3.5% real) is the lowest since the end of 2013. This behavior is supported, mainly, in the stagnation of demand deposits, which predominated over the dynamism of time deposits.
Despite solid profitability trends, banking conditions could become somewhat more challenging. Sustainable loan growth, higher funding costs and credit risks will be the primary areas of concern. Customer service, digital tools and economies of scale are key for success.
This paper evaluates the macroeconomic effects of taxes on banking in a small open economy in a currency union for three tax alternatives: an additional tax on profits, on deposits, and on loans. We propose a DSGE model with a rich detail of taxes and a banking sector and show that these three taxes are equivalent in their …
The emergence of cryptocurrencies is opening the way to Central Bank Digital Currencies (CBDCs). This paper highlights the pros and cons of issuing CBDCs under four different variants: from the more modest proposals to the most ambitious ones where there could be a serious disruption in financial intermediation.
Bank deposits have slowed since the end of 2015 and further more since the beginning of 2018. The slowdown matches historical patterns during late-stage economic expansions. The likely cause is the higher attractiveness of deposit alternatives as deposit interest rates have not increased commensurately with other short-term…
Following advances in the distributed ledger technology, central banks are assessing the issuance of digital currency. There's a range of possible schemes to adopt depending on which features of cash to hold: universality, anonymity and non-yield bearing. We analyze opportunities and challenges of 4 key schemes, that suppor…
Financial tensions surged somewhat in May especially in EM as the probability of a FED rate hike increased. EM Equities under pressure. Risk premium (CDS) mildly increase on a higher probability of a Fed rate hike in June. Regulatory Developments: Risk weights on consumer loans and capital adequacy.