American Express ( AXP), issuer of the green charge cards that are synonymous with the expense account life, has long competed against banks and, by some measures, out-earned the deposit-and-loan crowd.
The Fed has also recorded a handsome profit on its emergency-lending programmes to healthy banks, as did the Treasury on its purchases of mortgage-backed securities and, so far, the Federal Deposit Insurance Corporation on bank-loan guarantees.
Because for there to be enough money for the deficit nations to borrow cheaply, there must be an AAA rating and a 30% cash-to-loan deposit, as I understand it.
The overall loan-deposit ratio for the banking industry is the lowest it has been since 1984.
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Banks are running at very low loan-deposit ratios, so even if some large depositors flee, there will still be plenty of money available for credit-worthy borrowers.
Kroll's software had to synch not only with banks' mainframes but also with programs run by intermediaries--such as Harland Financial Services and FIS--that track deposit and loan data and integrate them with banks' general ledgers.
Their deposit-taking more than matches their loan-making, and they keep a fifth of their deposits in reserve at the central bank.
Credit Suisse also recommends investors take a look at some underleveraged banks with low loan-to-deposit ratios.
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In June, outstanding loans amounted to only 11 billion yuan, giving banks a yuan loan-to-deposit ratio of just 2%.
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"In Thailand, the loan-to-deposit ratio is already close to 100%, " says Rountree.
While the ability of some smaller banks to lend is restricted by the loan-to-deposit ratio regulations, sluggish credit expansion was not primarily a result of liquidity constraints, Barclays analysts said.
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History doesn't exactly inspire confidence: in the wake of the Japanese and Asian crises in the 1990s, loan-to-deposit ratios fell to around 80%, which is also roughly the same level that the U.S. market has fallen to today.
Austria's central bank has said that Austrian bank subsidiaries in central and eastern Europe should not exceed a loan-to-deposit ratio of 110%, a way of ensuring that their funding needs do not make too great a call on resources back at headquarters.
He might wonder why Mr. King is focused on RBS when BOE data show that it is Lloyds and Santander U.K. whose rapid deleveraging is inflicting the most damage on the U.K. economy, as they wrestle with loan-to-deposit ratios of 135% and 125% respectively.
First Manhattan, a consultancy, reckons that one-third of the improvement in big American banks' earnings since 1993 comes from three non-recurring factors: lower deposit-insurance premiums, smaller provisions for loan losses and a wider gap between market interest rates and the rates banks pay depositors.
Brazil reduced reserve requirements and gave banks and its deposit-insurance fund incentives to buy up the loan portfolios of smaller banks.
"Over a five-year period ending in 2010, neither loan nor deposit levels were increasing, " he said.
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According to the financial information service Moneyfacts, the average cost of a two-year fixed-rate loan, for someone with a 25% deposit, is currently 4.28%.
Joerg Kraemer, chief economist at Commerzbank -- Germany's second-largest bank -- would expect the ECB to cut the deposit rate to negative territory before putting in place any other non-standard measures such as a loan scheme for small businesses.
State-owned banks still dominate the financial sector and are kept profitable by a positive spread between loan and deposit rates dictated by government policy.
But Mr. Osborne may wonder why Mr. King is saying this now, as RBS nears the end of a five-year restructuring that has seen it cut its balance sheet almost in half and reduce its loan to deposit ratio to a healthy 100%.
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