What does the 2023 bank walk mean for the broader economy and the nature of banking? How should investors, too, be thinking about the bank walks and their impact on lending and the broader economy? VettaFi financial futurist Dave Nadig sat down with Bianco Research LLC president Jim Bianco and WisdomTree global CIO Jeremy Schwartz to discuss.
Speaking at the Camp Kotok financial gathering in Maine last month, the trio addressed a series of bank-specific and broader questions. They touched on the nature of modern banking, how concerned banks should be about deposits, the impact of bank walks on the overall economy, and gauged the potential for Fed rate cuts before the 2024 election, as well.
Bank Walks Discussion
1:00: Do we still need to worry about the gap between rates and what people are earning from banks?
1:30: Is the bank situation even “over,” and the difference between bank walks and runs
2:15: Bank deposits and money market funds
2:30: The impact of mobile banking on the nature of deposit-taking
3:15: Bank walks and bank profitability
4:00: Does the true nightmare scenario involve lending drying up and the economy coming to a halt?
5:00: Where the economy feels the bank walk impact on loan availability
5:45: The risk to bank profitability vs. bank solvency – which matters more?
6:45: Redefining what we mean by a bank
7:15: The WisdomTree Prime app: is it a bank? Or does it just offer banking services?
8:30: How do banks, like community banks, respond?
9:15: Canadian vs. American banking systems
10:00: What’s the true purpose of a bank?
10:45: The bank as a commercial lender first and foremost
12:00: WisdomTree Prime and its intended clients
12:30: The impact of higher for longer on banks
13:30: Gauging the chance of a rate cut before the 2024 election
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