COMM 329 Lecture Notes - Lecture 7: Mortgage Loan, Money Market Fund, Credit Union

• School: Queen's University
• Department: Commerce
• Course: COMM 329
• Professor: William T Cannon

Document Summary

Residential mortgages have grown increasingly important in part due to the faster growth of. They have also emphasized residential mortgages as the primary lending activity. Consumer loans have declined rapidly in importance. During the 1970s, the small loans act limited the rates that cus could earn on consumer loans through rate ceilings. While this was repealed in 1980, and while cus have innovated on consumer loans, they have nonetheless remained relatively unimportant. During the 60s, 70s commercial and industrial mortgages grew very fast; non-mortgage commercial loans also grew quite rapidly. Cus realized that their function (to serve the communities) was well suited for providing for businesses in the communities. Liquid asset holdings has been in steady decline as cus have become more agile in their liquidity management, and as they have made more and more loans. For one, capital shares make up a far greater proportion of assets than shares at a bank.