Reassessing deposit behavior: Strengthening ALM assumptions in a changing rate environment

During the liquidity surge, many financial institutions relied on stable deposit growth, low deposit betas, and predictable customer behavior. That environment has shifted in meaningful ways. Many institutions are facing increased rate sensitivity, higher funding costs, evolving customer preferences, and greater competition for funding.

If ALM assumptions have not been revisited recently, outdated deposit betas and non-maturity deposit assumptions can distort interest rate risk results and margin projections. In this webinar, we will examine how institutions can reassess deposit behavior and strengthen ALM modeling for today’s rate environment.

You will learn: 

• How rising deposit betas impact net interest margin and rate risk exposure
• The effect of deposit mix shifts on liquidity and earnings sensitivity
• Key considerations when modeling non-maturity deposit assumptions
• Practical steps to validate and update deposit assumptions before your next ALCO review