It is crucial, therefore, that bank managers take stock of how their balance sheets have evolved - including the widening menu of choices available to customers on both sides of that balance sheet - and understand the accompanying implications.
The freedom to manage your liability structure is still constrained by one remnant of 1930’s era banking regulation - the prohibition of interest on demand deposits. This is of particular concern to community bankers, of course, given that larger banks are offering interest to their customers through sweep accounts.