Non-deposit sources of funds for banks include borrowing from other banks or capital markets which poses certain risks. When banks rely heavily on non-deposit funding, they face liquidity risk if those funding sources are suddenly withdrawn. They also face interest rate risk, as non-deposit funding usually has floating rates tied to market interest rates, while bank assets like loans have fixed rates. This makes a bank's margins vulnerable to rate fluctuations. Additionally, relying on volatile non-deposit funding can undermine a bank's stability if a large portion of its liabilities are short-term in nature.