Chapter 6

Strategies of Depository Institutions


Depository institutions are broadly classified into commercial banks and thrift institutions. The commercial banking industry provides commercial, industrial, and consumer loans and accepts deposits from individual and institutional customers. Commercial banking covers services such as cash management, credit services, deposit services, and foreign exchange. The explosive growth of secondary loan and credit markets altered the shape of the corporate banking industry. Commercial banks face challenges with respect to additional revenue generation in the event of economic uncertainty, regulatory issues, high liquidity costs, and low demand for loans. The basic functions of commercial banks ...

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