Decreasing deposit/loan-ratio for banks
Banking and financial markets
orbofbm, Financial corporations, balance sheet, banks, mortgage companies, finance companies, state lending institutions, loans, deposits, financing, mortgages, bonds, commercial papers, shares, ownership interest, assets, liabilities, foreign banks, borrowers, balancesFinancial institutions and other financial corporations, Banking and financial markets

Financial corporations, balance sheetJanuary 2007

As from 2016 the statistics is published with Banks and mortgage companies.



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Decreasing deposit/loan-ratio for banks

Since January 1996 there has been a decrease in banks’ deposit/loan ratio by one third. This has lead to a growth in the banks bond financing.

Banks. Loans to customers, deposit from costumers and deposit/loan ratio. January 1996 - January 2007

Banks. Deposit, Ordinary bond loans, Short term security loans, Inter bank loans and loams from the Central Bank. January 1996 - January 2007

In January 1996 the deposit/loan ratio was 91 per cent, meaning that 91 per cent of banks’ loans were financed by deposits. In January 2007 this ratio was reduced to only 63 Per cent. This is partly due to a sharp increase in Bank loans in the last years.

Customer deposits are regarded as a long term, safe and inexpensive credit source for banks. The banks now have to go to the bond market and the money market to finance their loans instead. The second graph shows the shares of, and the development in the different parts of the banks’ long term (deposits and bonds) and short term (short term securities, inter bank loans and loans in the Central bank) financing.