REAL-WORLD EFFECT: "As the Fed shrinks its balance sheet, it is going to pull deposits out of the industry," PNC CEO Bill Demchak said. JPMorgan Chase could lose nearly 8%, or $100 billion, of its deposits in the second half of next year, depending on when rates start to rise, CFO Marianne Lake says.
Most bankers expect to see deposits flow out of their coffers next year if interest rates rise as expected, and some are starting to estimate how many. Whether the trend is good or bad depends on each bank's specific situation, but everybody has to get ready.
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