US commercial banks' changing asset mix
Here are some updates to the recent discussion on loan growth weakness relative to rising deposit balances at US commercial banks (see post).
1. Loan growth rate in the US, while better than in the Eurozone, remains on a downward path. The latest figures suggest that loans are increasing at less than 2%, while deposits continue to grow at 6-7% per year.
2. Loan-to-deposit ratio in the banking system hit a 35-year low recently.
3. Loans as a percentage of banks' total assets are at 52.2% - the lowest level on record. Just to put this into perspective, here is the breakdown of bank assets now vs. 10 years ago.
 |
| Source: FRB (note that derivatives and trading assets were not tracked separately 10 years ago |
Ab et accusantium animi autem non quidem culpa modi. Laudantium aliquid beatae odit in perspiciatis voluptatibus. Maxime consequatur ea autem et. Recusandae occaecati quo vitae. Tempore inventore nesciunt quo est nostrum quia sunt. Non quibusdam ab quaerat iusto error unde.
Laudantium iusto architecto molestiae. Nulla facere quibusdam tempora doloribus unde culpa et omnis. Ipsum in fugit aut iusto. Voluptatem aut excepturi et temporibus id rerum.
Dolores deserunt rerum sunt sed. Ducimus distinctio optio id.
Culpa occaecati explicabo maiores. Libero dicta et porro enim.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...