Borrowed funds are divided into banks of deposit and non-deposit

Banks attract free money by performing deposit transactions, in the process of using various types of bank accounts. Deposits are demand and time. Demand deposits are placed in a bank checking account customer. They are used for current owners of the accounts with their economic partners. At the request of client funds from his checking account at any time may be removed by means of cash, the payment order, payment of checks or drafts. Demand deposits are unstable, which limits their use for bank lending and investment operations. Term deposits - is the funds deposited with a bank for a certain period of time not less than one month and may be withdrawn after this period or after notice of the bank. Urgent funds for banks are the best kind of deposits, because they are stable and comfortable in the banking plan. Behind them paid a high deposit rate, the level of which varies depending on the type of deposit period, the period of notice of withdrawal, the general dynamics of money market rates and other conditions. Category: Management Operations Commercial Bank | Tags: Borrowed funds