RBA on at-call bank deposits

RBA deputy governor, Philip Lowe, gave a speech last week that outlined the importance of maturity transformation or transforming illiquid long-term assets into shorter-term liquid assets and said, "The best, and most obvious, example, of this type of transformation is an at-call bank deposit…The holder of a deposit has a completely liquid claim on the bank. The full face value of the deposit can be drawn on at any time,...

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