The decline in core deposits: what can banks do?

James Harvey and Kenneth Spong ()

Financial Industry Perspectives, 2001, issue Dec, 35-48

Abstract: In recent years, growth in traditional deposit funding sources has failed to match the growth in assets at many banks. These funding shortfalls are raising a number of important concerns, including whether community banks will have to curtail lending to small businesses, farmers, and other local customers. This article takes a look at bank funding trends and their implications for community banks. The article also examines possible explanations for the trends, such as strong loan demand, shifts in household financial portfolios, new competition, comparative returns on other financial instruments, and changing demographics in community banking markets. The final section of the article then explores the options and strategies community banks can use to address their funding challenges.

Keywords: Federal Reserve District, 10th; Banks and banking; Bank deposits (search for similar items in EconPapers)
Date: 2001
References: Add references at CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://www.kansascityfed.org/PUBLICAT/FIP/prs01-4.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fedkfi:y:2001:i:dec:p:35-48

Ordering information: This journal article can be ordered from

Access Statistics for this article

More articles in Financial Industry Perspectives from Federal Reserve Bank of Kansas City Contact information at EDIRC.
Bibliographic data for series maintained by Zach Kastens ().