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    Types of Sources From Which Banks Obtain Funds

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    What are the main source of funds for banks?

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    Generally speaking, banks require funds to support lending to home buyers, credit card customers, small and medium businesses, and institutional clients; and, there are two main sources from which banks may obtain these funds to lend. These are either from the bank's own funds or from borrowed funds.

    A bank's own funds are mainly of three types:

    i. Equity or Paid-up capital - Paid-up capital is the portion of authorized capital of the bank which is fully paid by shareholders. ...

    Solution Summary

    This solution provides you with information about some of the sources from which banks obtaining funding in order to support lending to its varied customers.