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