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Deposits are the cheapest funds obtained by a bank which are mostly invested in loans. The objective of the paper is to identify if there is any difference in correlation between deposits and loans among commercial banks of different sizes. This paper contributes to the existing banking literature by exploring the strictly regulated banking industry and is one of the few to investigate the correlation between deposits and investments in commercial banking in general.

The relationship between deposits with banks loans depends on the size of the banks' (case study of Serbia)