How are banks going to manage big rates increases

Hi,

I'm writing from Europe, so this might not apply entirely to US. Over here, in recent years, the default option for a mortgage was a fixed rate loan for 5-10 or even 30 years at rates <2%. As reference rates rise, they obviously can't charge customers with fixed rate mortgages more, so how are they going to:

1. Keep their customer's deposits. Now obviously there will be banks that will be less exposed to mortgages which will be able to attract deposits at higher rates. What will the other banks do as their money coming in is doing so at essentially 3-4pp below what they need to offer for deposits?

2. Not go under.

Really curious on how you see this. The problem stems from the fact that nobody expected rates to have to rise as quickly as they did/are.