Deposits gathered from such sources, even those not explicitly “brokered,” can be less stable than traditional core deposits, since the depositors typically lack any other customer relationship with the institution and could shift funds to a different bank or investment in search of a higher return.
In addition, many regional and community banks today rely more heavily than in the past on wholesale borrowings from financial intermediaries, including other commercial banks and securities firms, to supply portions of their funding mix. Indeed, regional and community banks have relied increasingly on the liability side of the balance sheet for funds management.