From a regulatory perspective, large banks are well-positioned in their liquidity coverage ratio
From a managerial perspective, banks’ positions are far more varied
Bain’s bank health check reveals substantial variation in how well banks manage liquidity. As deposit rates rise, it’s easier than ever for customers to shift their funds to new competitors. So traditional banks face big risks if they misjudge the balance between preserving profitability and retaining deposits. A five-fold plan will help them navigate the choppy waters.