Deposit Beta Wars: How 5%+ Rates Trigger Regional Bank Margin Collapse.

This report explores how North American regional banks, particularly in the United States, are affected by interest rates exceeding 5%, focusing on the impacts on deposit pricing, deposit betas, and net interest margins from 2022 to 2026. The analysis includes the Federal Reserve's rapid policy shifts, deposit market dynamics, and alternative liquidity channels, highlighting the challenges and strategic responses by the banks. Emphasizing technology-driven solutions, the report examines how banks can navigate the competitive deposit landscape amid changing economic conditions. The ultimate aim is to guide banks in maintaining profitability and resilience through informed risk management and strategic planning.