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Insights Into How Deposit Rates Are Set At A Community Bank

Sunday, November 7, 2010 - 3:32 PM
This North County Times article provides some interesting insights into the decision making process of a CEO of the California Community Bank in setting rates:
Hartwig's core problem is a balancing act. He must pay enough on interest rates to keep depositors interested, so he can lend their money to businesses at a higher rate. Low interest rates cause volatility in deposits. But he can't charge too much for the loan because competition is tough in North San Diego County.

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Ken TuminKen Tumin5,442 posts since
Nov 29, 2009
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