> basic job of a retail bank is to fund long-term loans with short-term deposits.
CDs are a thing. Unpopular because their rates sucked but that hasn’t always been the case.
Long-term loans become like short term loans closer to maturity. A mature bank should have a fair amount maturing every year, mortgages 24 or 23 or whatever years ago. Along with some early repayments or reissuances from people moving. Or 4 years ago for a vehicle, etc.
CDs are a thing. Unpopular because their rates sucked but that hasn’t always been the case.
Long-term loans become like short term loans closer to maturity. A mature bank should have a fair amount maturing every year, mortgages 24 or 23 or whatever years ago. Along with some early repayments or reissuances from people moving. Or 4 years ago for a vehicle, etc.