Shrinking crypto deposits by $8 billion to $10 billion and replacing them with wholesale borrowings costing around 4.25% will drive a significant reset in net interest margin in the coming quarters, said Usdin. While management plans to pay down some borrowings with core deposit growth, it will take some time for the bank’s other businesses to generate that growth, according to his report.
Source: https://www.coindesk.com/business/2023/01/09/signature-bank-downgraded-at-jefferies-due-to-shrinking-crypto-business/?utm_medium=referral&utm_source=rss&utm_campaign=headlines