Week 7 Discussion 2

"Non-Deposit Liabilities" Please respond to the following:

Suggest what you believe to be the most significant advantages and risks that the pursuit of liability management brings to a borrowing institution. Propose two ways to maximize the advantages and two ways to minimize the risks involved.

Determine the factors that the manager of a financial institution must weigh when choosing among the various non-deposit sources of funding available today. Support your position by explaining why these factors are important.