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Average Loan And Balance
card file or book customarily kept by banks to show each customer's average
daily or monthly loans and deposits over a period of, say, 10 years.
The information posted on these cards is obtained from the depositors'
ledgers and the loan and bills discounted ledgers.
It furnishes a quick and convenient means of obtaining important
information concerning depositors' accounts, e.g., (1) amount of average
deposits and loans as a measure of profitableness; (2) the average balance
as a measure of possible borrowing power when applying for a loan; (3)
whether the average balance is in proportion to loans (usually 20% average
balance is required to be maintained against loans); and (4) whether the
deposit balance is increasing or decreasing.