# What does Northern Rock do with deposits?



## tricks (27 Jul 2007)

Not sure where to put this question so stuck it here.

Was thinking about the way back use their saver's deposits to partially fund loans, as came up in another thread.  It occurred to me what do Northern Rock do with the deposit's of their Irish savers?  As far as I know they only lend in the UK (they don't here in Ireland anyway and they've no other Euroloand operations do they?).  I'd guess they don't take the currency risk and use it to fund loans in Sterling.  Do they lend it to Irish banks? Invest it?  Something else?


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## joe sod (28 Jul 2007)

They loan it out as mortgages probably in the UK. Of all the british banks they are the most exposed to the mortgage market. I am a bit concerned by this as i have a northern rock account


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## Riddler (18 Aug 2007)

They probably ride the yield curve as a bet on the underlying duration of demand deposits and use this as a liquidity base.


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