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The average cost of deposits refers to the average interest rate that a financial institution pays to its depositors for their funds. It is calculated by dividing the total interest expense on deposits by the average total deposits over a specific period. This metric helps banks assess the cost-effectiveness of their funding sources and can influence pricing strategies for loans and other financial products. A lower average cost of deposits can enhance a bank's profitability by reducing overall funding costs.

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2d ago

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How do you calculate cost of deposit of banks?

cost of deposits= Interest paid on Deposits/Total deposits


What is the formula to find the average variable cost?

Average Variable Cost = Total Variable Cost/ Quantity Average Cost = Average Fixed Cost + Average Variable Cost Average Cost = Total Cost/Quantity


average cost?

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Does marginal cost curve always intersect the average cost curve at the average cost curve's lowest point?

When the marginal cost is below the average total costs or the average variable costs,then the AC would be declining.When marginal cost is above the average cost then the average cost would be increasing.Therefore the marginal cost should intersect with the average cost at the lowest point in order to pull the average cost upwards.


What is cost What is the difference between total cost and average cost?

Average total cost is the average of all your costs. This is your Fixed Costs and your Variable costs. Average Variable Cost is the average of your costs that can fluctuate.


What does a bank do with deposits made by the average citizen?

i know the answer but i want you to tell the answer


What is negative carry on CRR and SLR?

Negative carry on CRR and SLR balances arises because the return on CRR balances is nil, while the return on SLR balances (proxied using the 364-day Treasury Bill rate) is lower than the cost of deposits. Negative carry on CRR and SLR is arrived at in three steps. In the first step, return on SLR investment was calculated using 364-day Treasury Bills. In the second step, effective cost was calculated by taking the ratio (expressed as a percentage) of cost of deposits (adjusted for return on SLR investment) and deployable deposits (total deposits less the deposits locked as CRR and SLR balances). In the third step, negative carry cost on SLR and CRR was arrived at by taking the difference between the effective cost and the cost of deposits.


What do you mean by Average Cost System?

average cost?


Why is average cost and average variable cost are both you shaped?

the average variable cost curve and average cost curve are u- shaped because of the law of variable proportions.


What happens to average variable cost if the marginal cost is less than it?

If the marginal cost is less than the average variable cost, the average variable cost will decrease.


What is the average monthly cost for laundry?

what is the average cost in newark


What is an average oil change cost?

the average cost is 4.29.