New factors reshape non-maturity deposit stability

The literature highlights technology's role in influencing non-maturity deposit (NMD) behavior, primarily by enhancing information dissemination rather than merely accelerating withdrawals for sophisticated depositors.

Social media platforms, for instance, can foster herd behavior and spread rumors, as observed during the Credit Suisse failure and Silicon Valley Bank run.

Concurrently, increased competition within the banking sector and from non-bank financial institutions has exacerbated NMD instability.

Easier transfers to alternative investments like money market funds have potentially strengthened the monetary policy transmission channel, leading to reduced depositor stability.

The review suggests that while technology facilitates faster information flow, its impact on actual withdrawal speed for large corporate deposits may not be dramatically new.

The review confirms that established factors such as deposit insurance, depositor discipline, deposit concentration, and bank health fundamentals remain central to non-maturity deposit (NMD) stability.

These traditional drivers continue to shape depositor actions and overall bank funding resilience.

However, the paper also assesses how recent developments, including technological innovations, shifts in banking competition, and regulatory changes, have influenced NMD behavior.

While these newer factors have demonstrably affected NMD stability, the literature remains inconclusive on whether their net effect has resulted in fundamentally more volatile depositor behaviors compared to historical experience.