Here are some updates to the recent discussion on loan growth weakness relative to rising deposit balances at US commercial banks
Tag Archive for loan-to-deposit ratio
Contributors- Economic and Financial, Must Read, Taken Down
How bank reserves make the gap between deposits and loans disappear- Sober Look
by Sober Look • • 0 Comments
Earlier this week, CNN Money ran a story on JPMorgan’s quarterly results. Instead of focusing on the earnings, the author’s (Stephen Gandel) discussed the fact that JPMorgan’s loan-to-deposit ratio (LTD) hit a new low.FORTUNE: – The nation’s large…
Contributors- Economic and Financial, Must Read, Taken Down
Need a corporate loan? Forget your bank – tap the shadow banking system instead – Sober Look
by Sober Look • • 0 Comments
Here is a simple question: what percentage of US banks’ balance sheets is taken up by loans to businesses? The answer may surprise some. It’s just under 11.5%, down from about 16% some 10 years back. Banks began preferring real estate loans (particular…
Contributors- Economic and Financial, Must Read, Taken Down
Deposit growth ≠ loan growth – Sober Look
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We’ve received a number of questions regarding the recent post on the trajectory of the US loan-to-deposit ratio (see post). Many are wondering how such fluctuations are even possible. That’s because the classic view in economics is that deposits …
Contributors- Economic and Financial, Must Read, Taken Down
US loan-to-deposit ratio the lowest in 30 years and falling – Sober Look
by Sober Look • • 0 Comments
The chart below shows US total loan balances relative to bank deposits over the past couple of years. The total loan growth rate continues to deteriorate while deposits grow.Source: FRED (5/4/2011=100)In fact the ratio of these two measures, the so-cal…
