This is strange. Yesterday, Bank of New York Mellon confirmed it will start charging customers 13 basis points for cash deposits in excess of 110% of their normal balance.
Apparently, as investors flee the stock market and turn to banks for safety and security, the demand for liquidity is creating a flood of deposits that is affecting the bank’s capital ratio and insurance fees as the unpredictability of the duration of new deposits meant it was unable to redistribute the cash into loans and investments in the way it normally would.
The new fee will affect clients with current month deposits of $50 million or more from Aug. 8.
This is strange. Yesterday, Bank of New York Mellon confirmed it will start charging customers 13 basis points for cash deposits in excess of 110% of their normal balance.
Apparently, as investors flee the stock market and turn to banks for safety and security, the demand for liquidity is creating a flood of deposits that is affecting the bank’s capital ratio and insurance fees as the unpredictability of the duration of new deposits meant it was unable to redistribute the cash into loans and investments in the way it normally would.
The new fee will affect clients with current month deposits of $50 million or more from Aug. 8.
Posted 1 year ago & Filed under Bank of New York, FDIC, Banking, Personal Finance, 60 notes
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