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This post addresses sources of funds for banks and costs.

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What are the sources of funds for commercial banks? Why is measuring of the cost of funds important to bank managers?

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The solution provides a detailed discussion explaining the sources of funds for commercial banks and why measuring the cost of funds is important to bank managers.

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What are the sources of funds for commercial banks?

The sources of funds for commercial banks include the fees and charges that banks charge to their customers for services. These include service charges, account fees, transaction fees, and various other miscellaneous fees. The funds derived from fees and charges are explained to the customer in the paperwork and disclosure notices that they receive when opening an ...

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