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Banking

  Banking   |   Terms
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  • June 15, 2020
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Size Transformation

A type of transformation that is performed by banks and other depositary institutions whereby small deposits by different types of depositors are pooled in order to issue large loans to seekers of funds. For example, 5000 small deposits with the bank to the tune of €1000 each, will allow the bank to provide a sizable loan of €5000,000 to a company seeking to finance acquirement of machinery equipment.


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