The main source of funds of commercial banks is deposits. The other sources of funds are borrowings from other banks, capital, reserves and surplus. The deposits of commercial banks are from savings deposits, current account deposits and term deposits.
Deposits remain the main source of funds for a commercial bank. The money collected can go toward paying on interest-bearing accounts, completing customer withdrawals and other transactions. As of February 19, 2018, the total amount of savings deposits held at commercial banks and other banking institutions in the U.S. totaled more than $9.1 trillion.
Answers & Comments
Explanation:
The main source of funds of commercial banks is deposits. The other sources of funds are borrowings from other banks, capital, reserves and surplus. The deposits of commercial banks are from savings deposits, current account deposits and term deposits.
Answer:
Deposits remain the main source of funds for a commercial bank. The money collected can go toward paying on interest-bearing accounts, completing customer withdrawals and other transactions. As of February 19, 2018, the total amount of savings deposits held at commercial banks and other banking institutions in the U.S. totaled more than $9.1 trillion.