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What is TAT in Banking term?

Updated: 9/20/2023
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Q: What is TAT in Banking term?
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Mixed banking is a system of banking where a bank combines both deposit banking as well as investment banking. In other words, the bank will provide short-term loans for commerce and trade and long-term finance for industrial uints. Such a type of banking was prevalent in Germany, where banks there were providing both short-term as well as long-term loans. In fact, in Germany industrialisation was rapid due to this type of banking. While this type of banking promotes rapid industrialiation, the mixed banking system reduces the liquidity of funds of commercial banks. Stated differently, it difficult to pay back the borrowed funds of customers whenever they make a demand of their money. This is because funds get blocked when the bank gives long term loans to industries. M.J. SUBRAMANYAM, BANGALORE, India