This is an archived release.
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.
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.
The statistics is now published as Banks and mortgage companies.