Liquidity management is one of the most important tasks for a commercial bank, and how to figure out coredeposits from the whole deposits plays an important role in liquidity management.
under FASB’s proposals, the three largest American banks could write up the value of their coredeposits by anywhere between $38 billion and three times that, says Mike Mayo of CLSA, a brokerage.
Its funding position is excellent with deposits exceeding loans, reducing its dependence on wholesale markets. And the core business continues to generate lots of pre-provision earnings.