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Feb 01
2010
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Another type of “traditional”Posted by Bill Streeter in Editors Column |
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There’s been a reaffirmation of late of the
concept of traditional banking. While there’s no official definition of
that term, our sense is that it is usually taken to mean the business
of raising deposits and using them to make loans. As many people have
observed, banking is a fairly simple business. Whether a person is any
good at it depends largely on how carefully they lend out the money and
how well they manage their cost of funds and operating expenses. It’s
more complex in practice, naturally. (The article on interest rate
risk, p.28, makes that clear.)
