ominations.
             In addition, the source of bank funds also changed. Prior to 1970 transactions deposits used to be the major source of funds for banks. After 1970, nontransaction deposits became the increasing majority. These deposits unlike deposits under Regulation Q pay a money market rate when combined with rising interest rates looked pretty attractive to investors. Further, commercial banks also began to borrow substantially more funds around this time from the Federal Reserve, the Federal Funds Market, their foreign branches, parent holding companies, and subsidiaries and affiliates. Banks also began to sell their securities under the agreement to repurchase them back on a known date for a predetermined price. Banks also began to sell assets through securitization in order to raise bank funds.
             Banks like any other business have risks. Because they have financial claims on both sides of the balance sheet their main concerns are credit risks and interest rate risks. Banks face credit risks because they invest heavily in nontraded private loans. This gives banks the right to do credit checks on its borrowers to insure that they charge high-quality borrowers low
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