Delayed gratification and the future of interest rates

We are taught in business school that interest rates are the expression of the time value of money. Time value of money ultimately boils down to “delayed gratification.” The lower the interest rate, the more we are comfortable delaying gratification in using our money for goods and services for ourselves. To be willing to delay the use of their money, people ask for interest to allow others to utilize their money until a later time. So, in 2021 when we experienced the lowest interest rates in modern financial history, does this sync with our society’s expanding patience for delayed gratification reaching new record highs? [Continue]

In a rates-up environment, keeping deposits a challenge

The day will inevitably come when your customer will visit the bank asking for a higher rate on their certificates of deposit. As one of the largest single sources of sustainable deposits, managing a CD portfolio has long created a dilemma for bankers [Continue]