Back to basics: non-determinant deposits

Liquidity and Deposits

A substantial portion of the liabilities of major banks consists of non-maturity deposits. Similarly, credit card loans can be a significant part of a typical bank's assets. Common characteristics among all such accounts include:

- no specific maturity

- individual account holders can add or subtract balances as they wish

- the interest rate on these accounts is usually, but not always, a function of open market interest rates

- the balances in aggregate often move in response to changes in open mar