3-6-3 Rule

3-6-3 Rule

What is the 3-6-3 rule

Rule 3-6-3 is a slang that refers to an unofficial rule in the banking sector that alludes to the condition of being uncompetitive and simplistic.

Rule 3-6-3 describes how bankers pay 3% interest on depositors’ accounts, lend money to depositors at 6% interest, and then play golf at 3 p.m. This hints at how the only form of business a bank had in the 1950s, 1960s and 1970s lending money at a higher rate than it paid its depositors (due to regulations more stringent).


Many attribute the problems faced by the banking sector during the events that led to the Great Depression as reasons why the government has put in place tighter banking regulations. These regulations controlled the rates at which banks could lend and borrow money. Unfortunately, regulation has made competition between banks difficult and the banking sector has stagnated.

Rule 3-6-3 and the growing complexities of the banking sector

With the relaxation of banking regulations and the widespread adoption of information technology, banks now operate in a much more competitive and complex manner. For example, banks can now provide retail and commercial banking services, as well as investment management and wealth management.

In retail banking (what many traditionally consider a consumer bank), individual customers use the local branches of large commercial banks. (These include Citibank and T.D. In retail banking, the focus is on the individual consumer rather than a larger customer, such as an endowment.

Investment management can involve managing both collective investments (such as a pension fund) and monitoring individual assets. For this reason, some consider that asset management includes wealth management. Asset managers working with collective assets can offer a wide range of traditional and alternative products that may not be available to the average investor, such as IPOs and hedge funds.

Wealth management can cover both wealthy individuals and wealthy individuals. Financial advisors will work with clients to understand the extent of their financial and other assets and develop tailor-made financial solutions to meet their needs. Financial advisers can provide specialized services, such as investment management, tax preparation and / or estate planning. Most financial advisors aim to obtain the title of Chartered Financial Analyst (CFA), which measures competence and integrity and is very difficult and grueling to achieve.

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