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What does core funding mean?

Updated: 9/18/2023
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Q: What does core funding mean?
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Core deposits are the most stable components of a bank's funding base and usually include smaller-denomination savings and third-party payments accounts. They are characterized by relatively low interest-rate elasticity. A bank holding a substantial proportion of core deposits has an advantage in having access to a stable and cheaper source of funding with relatively low interest-rate risk


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