đ DATA:
A Dallas Fed model suggests that a 10% increase in deposit rate sensitivity could reduce banksâ 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 isnât just changing trading and investingâit 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 banksâ 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 isnât just changing trading and investingâit could quietly reshape how the entire banking system prices money.
#AI #Banking #Finance #Crypto #economy
