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Banking Conditions

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Short-term bank deposit rates have declined slightly since October. Although business's demand for bank loans was strong in September and October, their increased utilization of alternative funding sources may portend a weakening in this area. Weaker loan demand would increase the pressure on banks to lower their deposit rates.

Suggested citation: “Banking Conditions,” Federal Reserve Bank of Cleveland, Economic Trends, no. 97-01, pp. 15-17, 01.01.1997.

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