Banks are facing "the most serious erosion in nearly two.

Banks are facing "the most serious liquidity erosion in nearly two decades," argues M.A. Schapiro & Co. equity research director Charles Cranmer. The company's data shows that illiquid assets as a percentage of core liabilities have risen from 84% to 95% in two years. Banks are taking their low-cost core deposits for granted, he believes, and pushing customers away by keeping rates too low.