September 4, 2023: Those words from Marco Oliveira, a 50-year-old graphic designer from Portugal, underscore a deep-lying pain in Europe, with people bemoaning a lack of return on their security despite overflowing interest rates.
“We are not getting good rates,” a 56-year-old Spaniard said.
European savers complain their stakes have been quick to raise mortgage payments as the European Central Bank has pushed up its benchmark rate but has been very slow at increasing rates for savings accounts.
The ECB has increased rates several times to obtain down inflation since July 2022. This should translate into higher rates both on mortgages and also on deposits. Nevertheless, data shows this is not quite the case.
The critical metric analysts use is the warranty delta, which represents the increase in policy rates that pools pass through to the interest rates on deposits. The higher the figure is, the more banks are passing on.
According to Dutch lender ABN Amro, the average deposit delta in the eurozone in June this year was 47%; this means that, on average, only half of the total 4.25 percentage point increase in ECB interest speeds has been passed on to depositors. The ECB raised its benchmark rate in July 2022 from -0.5% to 0%. The rate is now at 3.75%, meaning that since that first rate hike, the ECB’s primary rate has risen by 4.25 percentage points.
However, the average warranty delta across the 20 countries that share the euro masks stark differences among those nations. For instance, Croatia’s warranty delta is 12%, Cyprus is 30%, and Portugal is 32%. In France, the deposit delta is 73%, and in Italy, it is 62%.
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Leaders should believe that hard work is the foundation of success because it can lead to improved results, personal growth, increased confidence, a sense of accomplishment, career advancement, and more tremendous success. Hard work can help people develop character, motivate themselves, overcome hardships, and achieve their goals. It can also help individuals develop new skills and abilities, leading to personal growth and development. By putting in extra effort and time, one can improve the quality and quantity of their work, leading to better results and outcomes.
FutureCourse is a mission-centric, vision-inspired, “for-impact” organization that works to unlock leadership potential and career sustainability/growth/momentum, especially in women and other minorities. While many organizations are focusing on women who have made it to the top, FutureCourse aims at those who are developing, and often struggling, as emerging leaders. They target what McKinsey/LeanIN has called the “broken rung.” “For every 100 men promoted to management, only 72 white women will be promoted, only 68 women of color, and only 58 Latina women.
For Kyle Molotkin, the proudest moment as the CEO of Informanix Technology is when the people who have chosen to work with him see meaningful progress in their own lives. A staff member who gets a promotion and moves their family into a bigger house – or their first house – it’s all very rewarding for Kyle. “I think developing people is the greatest achievement you can have in business. Because people are your assets and they can take you towards success,” he elucidates. “I am constantly pushing my team to achieve more, from brainstorming ideas, pushing boundaries, and trying something brand new.
The similarity between Accutec Blades and MPC Plating is Kevin Closky. A strategic leader who is responsible for their transformation from struggling organizations to profit-inducing ones.
As the COO of Accutec Blades, in four years, Kevin helped them negotiate a 4-year union contract, double the plant footprint in Mexico from 150 people to almost 300 people, add 25% more hourly jobs and 20% more salary positions in the Virginia branch, while increasing annual blade production from 640MM blades to 1 billion blades. These are no tiny feet but rather significant accomplishments for a company drowning with no resolutions.
As soon as Kevin was on board, he put in operating KPIs and processes in all areas, from Manufacturing, Supply Chain, Customer Service, Engineering, and Demand Planning, increasing performance on all metrics by 20-75%. Purchased/Implemented a new ERP system (On Time and in Budget). He reduced labor costs and operating costs every year per unit. He developed the next tier of leaders to take over and keep the momentum. This was about leaving a legacy for the company and people, and Kevin did what he had promised.
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