Metropolitan Commercial Bank crypto exit leads to higher funding costs
Withdrawals by exchanges and other clients deflates non-interest-bearing deposits
Metropolitan Commercial Bank’s rushed disentanglement from the crypto sector has come at the cost of a steep increase in funding costs, as erstwhile clients moved their operational deposits elsewhere.
Non-interest-bearing demand deposits at the New York-based bank slipped 12.4% to $2.1 billion in the first quarter, against a 5.4% increase to $3 billion for interest-carrying accounts. Zero-cost deposits now account for 41% of the total, down from 46%.
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