The greater challenge going forward is, of course, the fact that demand deposits
are not necessarily very sticky.
grew 22 per cent year on year in February while time and savings deposits fell 7.
At the center of the controversy is the plan to scrap full protection of most types of demand deposits
in the event of a bank failure as part of a government plan to revise the safety-net mechanism for the banking system.
Another legislative proposal that would improve the long-run efficiency of our financial sector is elimination of the prohibition of interest on demand deposits
Such demand deposits
typically have earned 5 per cent interest annually, against twenty times as much for time deposits.
12) When MBS liquidations accelerate, the growth rates of demand deposits
and M1 after removing the MBS effect are smaller than the published growth rates.
First, if a market does exist for financial instruments represented by demand deposits
and core repurchase agreements of a community bank, as the FASB assumes in the sections I've already discussed, why does the FASB imply that estimates may be necessary alternatives to obtaining published quotes?
While respondents have not yet formulated their strategies, they all agree that competing solely on interest rate would erode the value of demand deposit
The volume of demand deposits
grew by 19 percent by the end of Q3 compared to figures of the same period last year whereas saving deposits posted a growth rate of 4 percent, the report said.
M1B consists mainly of currency in circulation plus demand deposit
, while M2 equals M1B plus time deposit.
M2 consists of cash in circulation, demand deposits
, quasi-money consisting largely of time deposits, and certificates of deposit at domestic banks including Japanese branches of foreign banks.
Economists have given two main reasons for this increase _ the advent of the Saudi Equity Market and excessive government spending, in spite of noticeable recession in the level of cash out side banks,added to on demand deposits
as well as period deposits.