The Wall Street Journal writes that "Small Banks Brace for Deposit Wars as Interest Rates Rise." They explain, "Rising interest rates were supposed to help banks. They are hurting many of them instead. Three years after the Federal Reserve began raising rates from near zero, bank customers are starting to demand more interest on their deposits, particularly at small and regional U.​S. banks. Many of these same banks ramped up lending after the financial crisis by adding long-​term, low-​rate loans. Now, as they pay out more to depositors, the rates they are earning on loans are barely moving." The Journal adds, "Smaller banks face a more immediate need to raise deposit rates. These banks use more of their deposits to make loans, meaning a loss of customers could jeopardize their ability to cheaply fund that lending. Their depositors often skew toward business accounts and consumers with certificates of deposit, two groups that tend to keep a close eye on rates. The pressure to raise rates to retain deposits has become much more profound in the last six months or so, said Scott Siefers, an analyst at Sandler O'​Neill."

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