Independent Banker - September 2017 - 56

SPECIAL SPOTLIGHT
ASK THE
EXPERTS
Tom Nelson
EVP & Chief Investment Officer
Reich & Tang
Concerned About Deposit Growth?
Dial in to the Reich & Tang Demand Deposit MarketplaceSM
to meet your needs.
What is one challenge community banks are facing today?
Nelson: One of the biggest challenges facing community
banks in the U.S. is a lack of deposit growth. There has been
a strong and growing need for deposits over the past 12
months. After the 2008 financial crisis, banks experienced
plentiful low-cost deposit growth. Post-crisis policies kept
rates low, but now the cost of funds is increasing and there is
concern deposit growth will lag loan growth. Retail customers
haven't pushed much for higher rates yet, but should yields
continue to rise, the likelihood is retail customers will shop
for better rates and start moving their money. Finally, while it
may take some time to affect community bank deposit levels,
the effect of two relatively new banking regulatory changes
(Basel liquidity rules and money market mutual fund
reforms) on the largest U.S. banks is disrupting how these
banks value certain customer deposits and traditional deposit
sources. It seems more likely these large banks will intensify
competition for the same retail deposits on which community
banks rely.
How is Reich & Tang poised to help community banks with
their deposit needs?
Nelson: Reich & Tang is experienced in solving banks'
deposit needs through its various flexible funding programs.
Banks of all sizes look to Reich & Tang to achieve their
funding goals with our easy-to-implement, low-cost solutions
that help to diversify liquidity and counterparty risk.
Benefits to banks:
* Ability to receive a stable diversified source of funds
* Enables banks to raise funds without impacting rates
paid in local markets
* Banks do not need to post any collateral as they do with
federal home loan advances
* Deposits are generally the least expensive source of
deposits
* Provides banks with a balance sheet management tool
* Attracts new customers' deposits by offering millions in
FDIC insurance
And when the environment changes
again, our Demand Deposit
MarketplaceSM
the flexibility for our " Receive "
Banks to be turned on or off when
necessary with no effect on the
bank's underlying customers.
Which areas of Reich & Tang provide the strongest support
for community banks?
Nelson: Our programs have flexibility, and that is due to our
operational efficiency and technology behind the programs.
An FDIC sweep program succeeds or fails based on the
accuracy and expediency of day-to-day transactions. One
of the key advantages Reich & Tang offers is a proprietary,
in-house technology that has been specifically designed for
FDIC sweep programs. We own and operate the systems that
provide centralized, efficient customer recordkeeping and
cash management services, therefore we are not reliant on
third-party providers, nor are we subject to the delays that
can occur when dealing with multiple parties. Reich & Tang's
systems interface with most of the major core processors.
Contact Reich & Tang today about how Reich & Tang's
deposit solutions can diversify your funding sources, improve
operational efficiency and satisfy regulatory requirements.
program
(DDM) program has
1411 Broadway, 28th Fl., New York, NY 10018
212-830-5243 | tnelson@rnt.com | reichandtang.com
___________
http://www.qmags.com/clickthrough.asp?url=www.reichandtang.com&id=20343&adid=P56A1
Independent Banker - September 2017

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