A $133-billion FCNR(B) liquidity bounty could be setting the stage for a lending rate war among banks, as lenders scramble to deploy the funds by chasing quality borrowers, retiring expensive deposits and cutting their dependence on certificates of deposit (CDs). With credit demand unlikely to immediately absorb the massive inflows, banks are also temporarily parking surplus funds in short-term government securities and high-quality corporate bonds, where relatively attractive yields are offering a profitable holding avenue.