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Banks / Deposit betas

Which banks reprice deposits when the Fed hikes?

A bank's deposit beta is how much of a fed funds increase it passes through to its depositors. This page computes it bank by bank from the raw FFIEC call reports, end to end across each of the three complete hiking cycles the 2001Q1+ filings cover: the implied rate on interest-bearing deposits at the cycle's last quarter minus the rate at its first, divided by the move in the average effective fed funds rate. In 2022Q1-2023Q3 the fed funds rate rose 5.14 points; the median bank passed through 0.31 of each point, and the asset-weighted mean across 4,572 banks was 0.49. Widely cited published estimates, like the New York Fed's, are industry aggregates; this page publishes the bank-level distribution beneath them.

0.38
Median beta, 2004Q2-2006Q3 (7,396 banks)
0.24
Median beta, 2015Q4-2019Q2 (5,261 banks)
0.31
Median beta, 2022Q1-2023Q3 (4,572 banks)
0.49
Asset-weighted beta, 2022Q1-2023Q3

Three cycles, three distributions

Betas are dispersed in every cycle, which is the Drechsler-Savov-Schnabl point: deposit pricing power differs bank by bank, and it is persistent. The 2022-23 median (0.31) sits 0.07 below the 2004-06 median (0.38) and 0.07 above the 2015-19 median (0.24): the typical bank passed through less of this hiking cycle than of 2004-06, not more. Asset-weighting tells a different story because large banks reprice faster: 0.52, 0.36 and 0.49 across the three cycles.

2004Q2 to 2006Q305101520253035beta below -0.2: 2 of 7396 banks (0.0%)beta -0.2 to -0.1: 4 of 7396 banks (0.1%)beta -0.1 to 0.0: 12 of 7396 banks (0.2%)beta 0.0 to 0.1: 74 of 7396 banks (1.0%)beta 0.1 to 0.2: 369 of 7396 banks (5.0%)beta 0.2 to 0.3: 1340 of 7396 banks (18.1%)beta 0.3 to 0.4: 2237 of 7396 banks (30.2%)beta 0.4 to 0.5: 1794 of 7396 banks (24.3%)beta 0.5 to 0.6: 961 of 7396 banks (13.0%)beta 0.6 to 0.7: 392 of 7396 banks (5.3%)beta 0.7 to 0.8: 113 of 7396 banks (1.5%)beta 0.8 to 0.9: 33 of 7396 banks (0.4%)beta 0.9 to 1.0: 24 of 7396 banks (0.3%)beta 1.0 and above: 41 of 7396 banks (0.6%)-0.20.00.20.40.60.81.0+cumulative deposit beta (0.1-wide bins; % of banks)median 0.38median 0.382015Q4 to 2019Q205101520253035beta below -0.2: 11 of 5261 banks (0.2%)beta -0.2 to -0.1: 14 of 5261 banks (0.3%)beta -0.1 to 0.0: 150 of 5261 banks (2.9%)beta 0.0 to 0.1: 724 of 5261 banks (13.8%)beta 0.1 to 0.2: 1175 of 5261 banks (22.3%)beta 0.2 to 0.3: 1263 of 5261 banks (24.0%)beta 0.3 to 0.4: 956 of 5261 banks (18.2%)beta 0.4 to 0.5: 537 of 5261 banks (10.2%)beta 0.5 to 0.6: 255 of 5261 banks (4.8%)beta 0.6 to 0.7: 102 of 5261 banks (1.9%)beta 0.7 to 0.8: 45 of 5261 banks (0.9%)beta 0.8 to 0.9: 10 of 5261 banks (0.2%)beta 0.9 to 1.0: 6 of 5261 banks (0.1%)beta 1.0 and above: 13 of 5261 banks (0.2%)-0.20.00.20.40.60.81.0+cumulative deposit beta (0.1-wide bins; % of banks)median 0.24median 0.242022Q1 to 2023Q305101520253035beta below -0.2: 0 of 4572 banks (0.0%)beta -0.2 to -0.1: 1 of 4572 banks (0.0%)beta -0.1 to 0.0: 17 of 4572 banks (0.4%)beta 0.0 to 0.1: 268 of 4572 banks (5.9%)beta 0.1 to 0.2: 697 of 4572 banks (15.2%)beta 0.2 to 0.3: 1165 of 4572 banks (25.5%)beta 0.3 to 0.4: 1055 of 4572 banks (23.1%)beta 0.4 to 0.5: 679 of 4572 banks (14.9%)beta 0.5 to 0.6: 349 of 4572 banks (7.6%)beta 0.6 to 0.7: 216 of 4572 banks (4.7%)beta 0.7 to 0.8: 91 of 4572 banks (2.0%)beta 0.8 to 0.9: 17 of 4572 banks (0.4%)beta 0.9 to 1.0: 9 of 4572 banks (0.2%)beta 1.0 and above: 8 of 4572 banks (0.2%)-0.20.00.20.40.60.81.0+cumulative deposit beta (0.1-wide bins; % of banks)median 0.31median 0.31

Each panel: share of banks per 0.1-wide beta bin, same y-scale. Lighter edge bars collect betas below -0.2 and at 1.0 or above (real data, kept). 10th-90th percentile ranges: 0.23 to 0.58 (2004-06), 0.06 to 0.48 (2015-19), 0.13 to 0.56 (2022-23).

The 2022-23 pass-through built quarter by quarter

Cumulative betas start low and grind up as depositors reprice: the asset-weighted beta was 0.17 in 2022Q2, 0.34 by 2022Q4, and 0.49 by 2023Q3. Each point compares that quarter's bank-level deposit rates with the same banks' rates in 2022Q1, weighted by 2022Q1 total assets; the fed funds denominator is the quarter's average FEDFUNDS minus 2022Q1's 0.12%.

0.00.10.20.30.40.50.62022Q2: asset-weighted cumulative beta 0.17 (avg fed funds 0.77%, 4,743 banks)0.172022Q2ff 0.77%2022Q3: asset-weighted cumulative beta 0.27 (avg fed funds 2.19%, 4,715 banks)0.272022Q3ff 2.19%2022Q4: asset-weighted cumulative beta 0.34 (avg fed funds 3.65%, 4,669 banks)0.342022Q4ff 3.65%2023Q1: asset-weighted cumulative beta 0.38 (avg fed funds 4.52%, 4,642 banks)0.382023Q1ff 4.52%2023Q2: asset-weighted cumulative beta 0.44 (avg fed funds 4.99%, 4,612 banks)0.442023Q2ff 4.99%2023Q3: asset-weighted cumulative beta 0.49 (avg fed funds 5.26%, 4,572 banks)0.492023Q3ff 5.26%quarter (ff = average effective fed funds rate in the quarter, FRED FEDFUNDS)

Banks in each point: those with a valid implied deposit rate in both 2022Q1 and that quarter (4,572 to 4,743 banks). The end-of-cycle point is the 0.49 headline above.

The largest banks, named

The ten largest banks by total assets at the 2022Q1 cycle start. Dispersion survives at the top: the range below runs from 0.26 to 0.75. These are implied average rates on interest-bearing deposits from public filings, not posted offer rates.

BankAssets 2022Q1 (USD bn)Rate 2022Q1 (%)Rate 2023Q3 (%)Beta
JPMORGAN CHASE BANK, NATIONAL ASSOCIATION3,4770.052.620.50
BANK OF AMERICA, NATIONAL ASSOCIATION2,5140.042.240.43
WELLS FARGO BANK, NATIONAL ASSOCIATION1,7640.042.150.41
CITIBANK, N.A.1,7180.263.460.62
U.S. BANK NATIONAL ASSOCIATION5780.102.470.46
PNC BANK, NATIONAL ASSOCIATION5350.042.260.43
TRUIST BANK5310.052.480.47
GOLDMAN SACHS BANK USA4750.384.260.75
CHARLES SCHWAB BANK, SSB4350.011.330.26
TD BANK, NATIONAL ASSOCIATION4170.082.540.48

Why beta is the number to know

  • Drechsler, Savov and Schnabl ("The Deposits Channel of Monetary Policy", QJE 2017) showed that banks with market power pass little of a hike through to depositors, so tightening drains deposits and contracts lending most where beta is low: doi.org/10.1093/qje/qjx019.
  • Their sequel ("Banking on Deposits", JF 2021) reads a low beta as a valuable deposit franchise that behaves like a hedge: sticky cheap deposits offset the losses long-duration assets take when rates rise: doi.org/10.1111/jofi.13013.
  • Drechsler, Savov, Schnabl and Wang ("Deposit Franchise Runs", JF 2025) is the 2023 caveat: the franchise only hedges if depositors stay, so a low-beta bank funded by uninsured depositors can lose the hedge exactly when it needs it, as at Silicon Valley Bank: nber.org/papers/w31298.
  • DeMarzo, Krishnamurthy and Nagel ("Interest Rate Risk in Banking", NBER w33308) is the counterpoint: once the fixed operating costs of running the deposit franchise are netted out, the franchise value is smaller and the hedge weaker than the beta alone suggests: nber.org/papers/w33308.

Method, in brief

Deposit interest expense by category from Schedule RI (year-to-date, dequarterized), interest-bearing deposit balances from Schedule RC, fed funds from FRED's monthly FEDFUNDS averaged by quarter. Rates outside 0-25% are dropped as data errors and counted. The full MDRM item mapping, the dequarterization check on JPMorgan Chase, the drop counts, and the external anchor against the New York Fed's published industry betas are on the methodology page. Built by scripts/build_deposit_betas.py from the 101 quarterly FFIEC CDR bulk files; every number on this page is computed from its parquet output at build time.