3 ms·
It's really just a convention. But if you wanna discuss the convention, in your example the $100 in deposits might vanish overnight (as in fact did in the case
by sdfghswe 4y ago
It's really just a convention.
But if you wanna discuss the convention, in your example the $100 in deposits might vanish overnight (as in fact did in the case of SIVB) whereas the $50 loans is a LOT less volatile.