Banks' incremental credit to deposit ratio, or the proportion of new deposits that banks use for fresh lending, has gone past the 100% mark. That indicates that banks are liquidating their investment portfolio to meet credit demand, putting further pressure on system liquidity.source https://economictimes.indiatimes.com/industry/banking/finance/banking/banks-selling-bond-holdings-to-meet-credit-demand-loan-rates-may-rise/articleshow/93307448.cms
No comments:
Post a Comment