What Is a Deposit Broker?
Broker deposit ratio refers to the ratio of broker deposits to total deposits.
Broker Deposit Ratio
Right!
- Broker deposit ratio refers to the ratio of broker deposits to total deposits.
- Broker deposits refer to the funds that securities brokers deposit into commercial banks on behalf of customers. They are characterized by large amounts, short term periods, and the purpose of obtaining high interest income. Therefore, they are more sensitive to changes in interest rates.
- The higher the ratio of brokers' deposits, the more likely a bank's liquidity crisis is
- It should be noted when using the broker's deposit ratio that this indicator is greatly affected by seasonal and cyclical factors. During periods of economic prosperity, liquidity indicators tend to decrease due to increased demand for loans, and during periods of economic recession, liquidity indicators will rise again. Therefore, the entire industry's liquidity indicators are unstable. When using a liquidity indicator, a bank must compare it with similar banks (including similar size, same status, and the same operating environment) to grasp the reasons for changes in liquidity.
- Core deposit ratio
- Deposit Structure Ratio
- Hot money ratio
- Short-term investment to sensitive debt ratio
- 1 Editor Gai Rui. Operation and Management of Commercial Banks [M] .ISBN: 7-04-018075-8 / F830.33. Higher Education Press, 2005.11
- 2 Editor Peng Jiangang. Management of Commercial Banks [M] .ISBN: 7-5049-3322-8 / F830.33. China Finance Press, 2004 [1]