WHY DEPOSITS ARE CRUCIAL RIGHT NOW

Depository institutions like banks and credit unions are in need of deposits, which support under-resourced communities in the ability to obtain affordable loans.

What are deposits used for?

• DEBT CONSOLIDATION
• SMALL BUSINESS SUPPORT
• EMERGENCY EXPENSES
• HOUSING PAYMENTS

Why is this occurring?

• The drop in deposits level expected by end of 2024.
  • Depositors are seeking higher-yield alternatives for non-operating cash.
  • The Fed continues to shrink its balance sheet by reducing the amount of money circulating in the economy.

Why is this important?

• (nearly four times the 18% that said so in 2022)
  • A decline in deposits directly affects community finance institutions and their ability to lend to individuals and communities.
  • Of credit unions named growing retail deposits as a high priority in 2023.
  • Liquidity challenges occur when depository institutions experience elevated loan growth at the same time as deposit decline.

Putting deposits into these financial institutions doesn’t have to be difficult. Get started by visiting mycnote.com/institutions