Back to basics: non-determinant deposits

With the strong trend in banking of mark-to-market risk management, bankers face the difficult task of calculating the market value for non-maturity deposits and credit card loans. Suresh Sankaran, vice-president and director at strategic consulting services firm Fiserv IPS-Sendero, sheds some light on the matter

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

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

The future of life insurance

As the world constantly evolves and changes, so too does the life insurance industry, which is preparing for a multitude of challenges, particularly in three areas: interest rates, regulatory mandates and technology (software, underwriting tools and…

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here