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No, cash deposits are the basis for a banks liquidity, they need a certain percentage of deposits (set by the Fed in the US) to cover the risk associated with their liabilities (loans).


I'm pretty sure that if you are a bank then the loans you make are assets on your balance sheet, not a liability.

e.g.

http://www.fool.com/investing/general/2007/01/05/understandi...




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