Beschreibung:
We analyze earnings credit rates (ECRs) within the U.S. banking system from 2002 until 2021. ECRs are a form of non-monetary interest used to offset commercial account fees and have not been widely studied due to data limitations. The Dodd-Frank Act led to the repeal of Regulation Q, which had effectively prohibited the payment of interest on commercial checking accounts. We use RateWatch data to examine how increased competition from interest bearing accounts affect ECRs. Ultimately, we find ECRs continue to be important to commercial banking customers despite implicit competition from interest bearing accounts