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Deposits – The bread and butter of banks: How major withdrawals can affect lenders

Updated : April 06, 2020 06:18 AM IST

Over the past few quarters, we have seen how asset liability mismatches have led to a sharp decline in valuations of NBFCs and created deep trust deficits.
If deposits get withdrawn from banks, they lose the trust of customers and this can trigger a domino effect, with more customers moving their money to other banks.
Deposits – The bread and butter of banks: How major withdrawals can affect lenders

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