CHICAGO (April 2, 2019) – A flash poll conducted by Baker Tilly Virchow Krause, LLP (Baker Tilly) indicates nearly 80 percent of banking institutions have increased their asset levels since the recovery period of the Great Recession.
“The amount of deposits in banking institutions from 2008 to the end of 2018 have increased from around $9 trillion to $13.5 trillion, respectively,” Timothy Kosiek, CPA, Baker Tilly partner and firm leader of the depository and lending practice, said. “This is partially due to the wave of consumers moving away from alternative investments.”
“The largest banks have seen the greatest increase in deposits since 2008, causing more competition within community banks who are fighting over a smaller pool of money” James Jarrett, CPA, firm director in Baker Tilly’s depository and lending practice, said. “With more consumers investing in money market funds, which larger banks can offer on their own platforms, community banks must often utilize third-party platforms for these and other transactions which has created an added cost and a potential disadvantage in the battle for deposits.”
Baker Tilly recently held an educational webinar, Managing liquidity in a fluid market, to assist depository and lending industry professionals with learning about the current landscape of traditional liquidity management, the regulatory perspective on liquidity ratios and the effect on continued bank consolidation.
The webinar presenters discussed:
A recording of the webinar is available at bakertilly.com/insights/managing-liquidity-in-a-fluid-market/.
Baker Tilly US, LLP (Baker Tilly) is a leading advisory, tax and assurance firm whose specialized professionals guide clients through an ever-changing business world, helping them win now and anticipate tomorrow. Headquartered in Chicago, Baker Tilly, and its affiliated entities, have operations in North America, South America, Europe, Asia and Australia. Baker Tilly is an independent member of Baker Tilly International, a worldwide network of independent accounting and business advisory firms in 145 territories, with 34,700 professionals. The combined worldwide revenue of independent member firms is $3.6 billion. Visit bakertilly.com or join the conversation on LinkedIn, Facebook and Twitter.