And how should demand deposits be valued, considering that banks do not know their maturity?
Indeed, Cypriot bank demand deposits are frozen as the Cypriot government decides what to do.
In principle, non-interest-bearing demand deposits are the most senior, and thus do not suffer losses until all the other creditors have a 100% loss.
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On the plus side, we have Eurozone banks growing on-demand deposits again, as of January at an annualized three month rate of 6.5% and twelve month rate of 7.3%.
Not only that, but it was unclear what exactly the target should be, since money could be defined in different ways: narrowly, as cash and demand deposits held with commercial banks, or broadly, including savings deposits with other financial institutions.
As we discussed in last month Monetary Watch , the recent acceleration in uncovered money substitutes is no longer just about depositors liquidating time and other term deposits in favor of instantly redeemable demand and savings deposits (in Austrian speak, bank depositors liquidating credit claims, raising cash, then depositing and holding that cash in money substitute form with those same banks).
But first-time buyers still face the demand for high deposits from lenders, who are keen not to hand out mortgages to those who may be at higher risk of defaulting.
Its financial system has fragmented, confidence is evaporating, demand is drying up and deposits are leaking out of the banks.
Denmark cut its deposit rate below zero in July last year, and in December, the Swiss bank Credit Suisse imposed negative rates on bank deposits to tame demand for the Swiss franc.
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The development is part of ambitious plans to further cement Australia's position as the world's largest coal exporter against a backdrop of booming global demand, by opening up deposits in the Galilee Basin in Queensland state.
"There is huge demand for loans and large amounts of deposits, " he says.
Retail investors, desperate to find alternative sources of income in the face of record-low yields on bank deposits, are another source of demand for corporate bonds.
Now the easy deposits of many energy resources are disappearing, but global demand continues to rise.
Demand for frac sand is rising as more energy companies explore unconventional oil deposits, but the supply hasn't kept up.
Most of this feeds demand for gold jewellery in rural India, where the only other investment options are bank deposits and land.
Good news for the economy might even translate into good news for savings accounts and other deposits, which have seen interest rates driven down to near zero by weak loan demand and Federal Reserve intervention.
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