Question

what action can a bank do to replace non core deposits

Answer 1

Core Deposites: It is fixed source of earning for financial Institutions and banks. They captured at smaller amount but volume is generally high, by capturing market through various time deposites, checking account, payments accounts etc.

Non Core Deposites: Which is not core deposit in simple terms, but actually they are those deposites which are taken by Financial instituations on behalf of other. Like Security deposit of seller deposited with Financial Institution XYZ.

In order to replace the Non Core Deposite, Financial Institutions may work on increasing the way to increase the core deposites, Like Loyalty points measurement, Senior citizen benefits plans, Girl child plans etc, these are the areas where financial institution can hit the market and increase their core deposites in order to replace non core deposites.