📊 DATA:
A Dallas Fed model suggests that a 10% increase in deposit rate sensitivity could reduce banks’ appetite for duration risk by around $700B.
The bigger issue is what happens when AI starts moving money instantly toward the best available returns.
Banks may have to compete harder for deposits, pushing their funding costs higher. And when banks pay more for funding, those costs could eventually reach everyday borrowers through higher loan rates.
AI isn’t just changing trading and investing—it could quietly reshape how the entire banking system prices money.
#AI #Banking #Finance #Crypto #economy
A Dallas Fed model suggests that a 10% increase in deposit rate sensitivity could reduce banks’ appetite for duration risk by around $700B.
The bigger issue is what happens when AI starts moving money instantly toward the best available returns.
Banks may have to compete harder for deposits, pushing their funding costs higher. And when banks pay more for funding, those costs could eventually reach everyday borrowers through higher loan rates.
AI isn’t just changing trading and investing—it could quietly reshape how the entire banking system prices money.
#AI #Banking #Finance #Crypto #economy
