In a review that certainly affects the energy industry in Oklahoma and other states, the Kansas City Federal Reserve Bank reports that bank deposit outflows continued last year despite increased deposit rates.
The Federal Reserve Bank of Kansas City includes Oklahoma and its review of deposits found that deposit rate increases simply did not keep pace with rising yields on other investments. Analysts concluded that monetary policy actions increased short-term interest rates and as a result, it enticed many depositors to seek more profitable investment opportunities.
There might have been another factor—banking stress episodes led some large depositors to question the safety of bank deposits and seek alternatives.
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