New Market Rates Insight Analysis Shows That Tax on Big Banks Will Increase Cost for All Banks
Summary
Press Release Pricing | News by Category | News by Country | News by US Region | Recent News | PR.com News on Your Site Press Releases Market Rates Insight Press Release Receive press releases from Market Rates Insight: By Email RSS Feeds: New Market Rates Insight Analysis Shows That Tax on Big Banks Will Increase Cost for All Banks Latest Study Shows 70 Percent Probability That All Banks Will Increase Deposit Rates Within One Week of Any Rate Increase by the Big Banks. San Anselmo, CA, January 27, 2010 --( The latest analysis by Market Rates Insight shows that there is a 70 percent probability that all other banks will follow the lead of the “big banks” and raise their deposit interest rates within one week in order to protect their market share and deposits from shifting to the “big banks.” As a result, the smaller banks, which are not being taxed directly, will incur a higher cost of funds expense that they could have avoided if they did not have to respond to the rate increase by the “big banks.” In January of 2010, the administration proposed a 15-basis-point “big bank tax” be levied against bank assets minus Tier 1 capital and domestic deposits, The proposal targets about 34 of the largest commercial banks – those with $50 billion or more in assets.MRI uses deposit surveys, mortgage and consumer loan surveys, fee and feature studies, scanned ads, new product alerts, and market share and money fund reports to give subscribers the intelligence they need to profitably react to emerging trends.It also shows that smaller banks follow the rate changes of the “big banks” with a one week lag time from the rate-change occurrence and that smaller banks price higher than “big banks” by an average of 34 bps, and a range of 0.8 to 62 bps.“If the “big-bank tax” becomes a reality,” said Dan Geller, Ph.D. Executive Vice President at Market Rates Insight.MRI uses deposit surveys, mortgage and consumer loan surveys, fee and feature studies, scanned ads, new product alerts, and market share and money fund reports to give subscribers the intelligence they need to profitably react to emerging trends.MRI’s products include customized, web-enabled market research tools that report on rates, as well as online searchable databases, gauges, alerts, and dashboards that aggregate key client data to provide real-time views on how they stack up against market competitors.Market Rates Insight is located in San Anselmo, California.