Prior to 1960 Banks relied on standardized demand and savings deposits as their primary source of funds. Gov't determined allowable interest rates, and all banks paid the maximum. 目 Banks compete for funds only by differentiating the quality of service and paying implicit interest. Primary strategy:office and branches. 麓的贫香小手Prior to 1960 Prior to 1960 Banks relied on standardized demand and savings deposits as their primary source of funds. Gov’t determined allowable interest rates, and all banks paid the maximum. Banks compete for funds only by differentiating the quality of service and paying implicit interest. Primary strategy: office and branches