Retail Banking Chapter 12

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Retail banking Chapter 12

Deposits are a key element in defining what a banking firm really does and what critical

roles it really plays in the economy. The ability of management and staff to attract trans-

action (checkable) and savings deposits from businesses and consumers is an important

measure of a depository institution’s acceptance by the public. Moreover, deposits provide

much of the raw material for making loans and, thus, may represent the ultimate source

of profits and growth for a depository institution.

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