Are Deposit The Main Source Of Funds For Banks?


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Ellie Hoe answered
Yes the deposits are the major sources for a commercial bank. According to Frederic S.Mishkin, there are two kinds of deposits in a bank including checkable deposits and nontransaction deposits. Checkable deposits form 9% of the all sources of funds and nontransaction deposits form 61% of all sources of funds. The other sources of funds for a bank are borrowings from other banks and bank capital which almost makes 24% and 6% of the total sources of funds respectively.

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