ABA Banking Journal - June 2011 - (Page 14)
No guests at Reg Q’s retirement party?
Interest on business checking ban may go out with a whimper
It’s not often that the reversal of a banking law going back to the Great Depression draws a low-key response from the industry. But a combination of factors results in most banks not making the repeal of restrictions on paying explicit interest on business demand deposits a priority. Among the factors: an overflowing plate of higher-priority tasks; an abundance of deposits; an urge to not give up increasingly scarce fee income; ultra-low interest rates; and questions about the technical details behind the “simple” change. Add an interesting deposit insurance twist and you get something of an exhausted yawn in many quarters, or a lukewarm response, at best. “We will be restructuring and re-pricing all of our business checking account products this fall and will probably create the business checking with interest
14 | ABA BANKING JOURNAL | June 2011
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