Professor Gregory Connor:

Deposits are considered a more stable source of funding than bank bonds. However, corporate deposits can be quite volatile, whereas retail deposits are a very stable source of funding for banks. As to the relationship between bank bonds and corporate deposits, bonds can give a more stable stream but it depends on their length. A long-maturity bank bond is somewhat more stable than a corporate deposit and the most stable is the retail deposit. The Deputy is asking what would lead a bank to have more corporate deposits than bonds. I am not sure that is something it would prefer from a risk perspective. It might prefer the longer-term bonds because they are more stable than a volatile corporate deposit.