"Analysts predict second wave of deposit outflows for banks"

The first wave of deposit outflows from banks has been stabilized by the Federal Reserve's Bank Term Funding Program and cash raised from advances borrowed from Federal Home Loan Banks. However, a second wave of deposit departures has started, with depositors moving their money to money-market funds due to the potential for higher yields and less risk. This shift could lead to banks competing more aggressively for deposits, as deposit rates typically catch up and rise even after the Fed has finished lifting rates.