U.3

U.3 is a banking industry standard that categorizes different types of bank deposits based on how easily they can be accessed and used. It helps regulators and financial institutions understand the stability and liquidity of bank funding sources. For example, it distinguishes between core deposits like savings accounts, which are stable, and more volatile funds like large, short-term deposits. This classification aids in assessing a bank's financial health and resilience by providing a clear picture of the types and sources of its funding, making the financial system safer and more transparent.