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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.

Ken TuminKen Tumin5,472 posts since
Nov 29, 2009
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