"European banks are desperately sliding into American DMs with deposit offers that would've been illegal three years ago - 4.5% on savings, 5.2% on CDs, plus signup bonuses that make Chase look like a lemonade stand. German banks that wouldn't return your emails in 2019 are now advertising in English on Facebook, offering higher rates than they give their own citizens. Deutsche Bank just launched an American deposit campaign while still paying Germans 0.01% on the same accounts"
"January 2025, new banking regulations hit Europe like a meteorite. Basel III Endgame requires European banks to hold more high-quality capital against their assets. American deposits, especially dollars, count as premium capital. European deposits don't score as well. What banks need by January 1: European banks realized in October they're short. Massively short. Either they raise capital (expensive), sell assets (devastating), or attract American deposits (desperate but doable). Every American deposit dollar counts 1.5x toward their requirements. Every euro from Hans in Berlin counts 1x."
European banks are aggressively courting American depositors with unusually high interest rates and signup bonuses to attract dollars. Basel III Endgame, effective January 2025, forces banks to hold more high-quality capital, and dollar deposits count more favorably than euro deposits. Many European banks are structurally short dollars because lending and trading often occur in dollars while deposits remain predominantly euros. Raising capital or selling assets would be costly, so attracting U.S. dollar deposits becomes an immediate strategy. Banks are targeting Americans with English advertising and offering foreigners higher rates than domestic customers, a legal and intentional pricing gap.
Read at Gamintraveler
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