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According to Goodman and you will Shaffer (1984), brokered places did not to start with produce to increase productive deposit insurance coverage constraints. Alternatively, it designed in the newest 1960s and you will 1970s for banking institutions discover go out deposits, for example, Dvds, away from outside of her market as well as depositors to find high rates. Reciprocal dumps try deposits traded anywhere between banking companies so you can effectively improve put insurance rates.
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