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The demand for the non-deposit funds is determined by the size of the gap between the banks total credit demand and it deposits and other
The demand for the non-deposit funds is determined by the size of the gap between the banks total credit demand and it deposits and other available funds.
The gap is governed by a number of factors except:
Interest rate environment & economic conditions
Regulatory requirements & the availability of funds
Risk appetite ¤t projected demand and investments the bank desires to make
the bank's credit rating & the bank's profitability
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