Question

what are non-core deposits for a bank

Answer 1

The core vs non non core deposits for a bank are both sources of capital and are liabilities for the banks. The core deposits can be in the form of saving accounts or checking accounts where as the non core depositd for banks include Federal funds purchase, Subordinate notes and debentures, Certificate of deposits, Federal home loan bank advances. Non core deposits becomes an important source especially during recession or when there is sudden run on the deposits of the bank.