If our analysis is correct and deposit growth has been fueled by low interest rates and weakness in the equity markets, community bankers should be aware that they may face unexpected liquidity and interest rate pressures if their deposit customers shift their funds to other investment vehicles. This is not idle speculation. We need to remember that depositor behavior can change.
An excellent example is the high-interest rate period we experienced in the late 1970s and early 1980s,  2  BIS Review 14/2004  when long-term certificates of deposit were redeemed early - despite the significant penalties assessed - in order to lock in higher market rates.