18-63 Recently banks have changed the liability structure towards instruments that have less withdrawal risk and higher explicit interest costs.

Name: 18-63 Recently banks have changed the liability structure towards instruments that have less withdrawal risk and higher explicit interest costs.
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Question

Quizplus · Accepted Answer

Banks have indeed shifted towards instruments that have less withdrawal risk (such as CDs) and higher explicit interest costs, in order to better manage their liquidity and funding risks.

18-63 Recently Banks Have Changed the Liability Structure Towards Instruments