Traditional Culture Encyclopedia - Traditional festivals - Deposits are passive liabilities of commercial banks
Deposits are passive liabilities of commercial banks
The difference between active liabilities and passive liabilities is that the bank is able to independently choose whether the liability should occur, the creditor of the liability and the duration of the liability, interest rates, repayment of other conditions, such as the issuance of bonds, rediscounted interbank lending, central bank borrowing, etc., are the active behavior of the commercial bank, the commercial bank in which it can decide whether it is necessary to have this liability, and it can be negotiated with the other side of the term, Interest rates, repayment terms and other aspects, while being on the liabilities is the ordinary public and private deposits, customers will be deposited in the bank, the initiative is not in the hands of the commercial banks, completely by the depositors to decide.
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