April 27, 2023 (NO COMMENTS)

Withdrawals by exchanges and other clients deflates non-interest-bearing deposits


Metropolitan Commercial Bank’s rushed disentanglement from the crypto sector has come at the cost of a steep increase in funding costs, as erstwhile clients moved their operational deposits elsewhere. Non-interest-bearing demand deposits at the New York-based bank slipped 12.4% to $2.1 billion in the first quarter, against a 5.4% increase to $3 billion for interest-carrying accounts. Zero-cost deposits now account for 41% of the total, down from 46%.