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Finance & Banking vocabulary · Interest & Exchange Rates

Deposit beta

Meaning in finance & banking, with examples

nounAdvanced term

In finance & banking, deposit beta means: The proportion of a benchmark interest-rate change passed through to deposit rates over a stated period.

In Turkish: mevduat betası

How it is used

State the benchmark and measurement window; beta is sensitivity, not the deposit rate itself.

Example sentences

  1. A deposit beta of 0.4 implied a 40-basis-point response to a 100-basis-point benchmark rise.

    The ratio compares rate changes rather than rate levels.

  2. The bank estimated a higher deposit beta for more price-sensitive customers.

    Customer behaviour affects the estimated pass-through of rates.

Common collocations

  • deposit beta assumption
  • estimate deposit beta
  • depositMoney that you put into a bank account, or the act of putting it there. For a bank, customer deposits are its main source of funding.
  • net interest marginA bank's interest income minus its interest expense, divided by its average interest-earning assets. It shows how profitably the bank lends and invests.

More terms: Interest & Exchange Rates

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This page explains English vocabulary for learners. It is not financial advice.