Why J. Morgan, world largest bank is planning to raise its deposit rate ahead of all US banks. Why should they copy the way Aussie banks whereas they hiked rate independency to Reserve bank.
Simple. It's confident in corporate market demand where leverage plays a very important role to suit risk appetisers.
What does that mean. I'm preparing a long post to say commodities market is surging in early 2016.
JPMorgan (JPM) Will be First Large U.S. Bank to Hike Deposit Rates for Some Clients
December 28, 2015 2:22 PM
JPMorgan (NYSE: JPM) is planning to raise deposit rates for some of its largest clients, according to Dow Jones Newswires.
The move comes following the Fed's rate hike earlier this month.
JPMorgan is the first of the big U.S. banks to make such a move. The institution is the largest U.S. bank by assets, according to the latest market data.
Most banks announced a hike in prime rates following the Fed's decision, but none have moved to increase deposit rates as net interest margins have been squeezed in recent years.
The increase will go into effect for some institutional investors at JPMorgan and will vary based on different metrics. The increase will be applied to operating deposits, which are less likely to be withdrawn in a crisis.
TRY Price at posting:
21.0¢ Sentiment: Buy Disclosure: Held
