From a bank manager's perspective, the differential in interest between a bank's loans and its deposits;

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The differential in interest between a bank's loans and its deposits must be sufficient to cover the bank's other expenses and generate a reasonable profit for the bank's owners. This is because the bank needs to earn enough money to cover its operating expenses and provide a return for its shareholders. If the differential in interest is too low, the bank may not be able to cover its expenses and may not be able to generate a reasonable profit. On the other hand, if the differential in interest is too high, the bank may not be competitive in the market and may not be able to attract enough deposits or generate enough loans. The federal funds rate, primary credit lending rate, deposit insurance premiums, and reserve requirements at the Federal Reserve are all factors that may affect the differential in interest between a bank's loans and its deposits, but they are not the primary considerations for a bank manager.

From a Bank Manager's Perspective, the Differential in Interest Between