Customers deposits in a bank are the bank's liabilities because they are OWED to the customer.
It acts as an insurer of bank customer deposits. A+
A Bank Teller
$100,000This is sort of complicated. Per www.fdic.gov:"The basic insurance amount is $250,000 per depositor, per insured bank."The $250,000 amount applies to all depositors of an insured bank."Deposits in separate branches of an insured bank are not separately insured. Deposits in one insured bank are insured separately from deposits in another insured bank."Deposits maintained in different categories of legal ownership at the same bank can be separately insured. Therefore, it is possible to have deposits of more than $250,000 at one insured bank and still be fully insured."
no
what are the disadvantages of bank deposits secrecy
Customers deposits in a bank are the bank's liabilities because they are OWED to the customer.
In 1995, $2.7 trillion was held in American bank deposits
Subordinated debt is a debt that ranks lower than bank deposits. From this point of view subordinated debt can't be deposits
An offshore bank is a bank located outside the country of residence of the depositor, that provides financial and legal advantages. These advantages typically include:greater privacylow or no taxationeasy access to deposits (at least in terms of regulation)protection against local political or financial instabilityA commercial bank is just a regular bank (Bank of America, Wachovia, etc.)
It acts as an insurer of bank customer deposits. A+
A Bank Teller
The deposits bank on further invests!
In bank deposits.
Answering "What steps can a bank take to deal with a significant outflow of deposits?"
$100,000This is sort of complicated. Per www.fdic.gov:"The basic insurance amount is $250,000 per depositor, per insured bank."The $250,000 amount applies to all depositors of an insured bank."Deposits in separate branches of an insured bank are not separately insured. Deposits in one insured bank are insured separately from deposits in another insured bank."Deposits maintained in different categories of legal ownership at the same bank can be separately insured. Therefore, it is possible to have deposits of more than $250,000 at one insured bank and still be fully insured."
The Advantages are that we get to ride a train or drive a car.