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American Banks' Loan-To-Deposit Ratio Is At A 30-Year Low

Sunday, October 6, 2013 - 8:43 AM
Total loan balances relative to bank deposits over the past couple of years shows the total loan growth rate continues to deteriorate while deposits grow.  In fact the ratio of these two measures, the so-called loan-to-deposit ratio is now at the lowest level in some 30 years.

Bank Loan-To-Deposit Ratio - Business Insider
ShorebreakShorebreak2,675 posts since
Apr 6, 2010
Rep Points: 14,527
1. Sunday, October 6, 2013 - 10:47 AM
Maybe it is because it is mostly business that use banks and they are cash rich. It is the working man and retirees that use credit unions for deposits and loans and they continue  to grow in the credit unions. Credit unions loans are much cheaper as a rule (car loans are now .99% up from .49%) and CD rates are over 2% for longer term CD's. Why would a working man go to a bank for 1% or less when he can get double that at a credit union?
Ally6770Ally6770932 posts since
Jan 16, 2010
Rep Points: 2,710
2. Sunday, October 6, 2013 - 11:10 AM
Unfortunately, things have seemed to change with the credit unions I joined.  They are no longer giving double what I can get at banks.  Last month I had to go to a bank 100 miles away to find a 2% 5 year CD. My credit unions were lower.  I sure hope they go back up but maybe they are getting too many deposits and don't need us as much now.  Can't depend on banks or credit unions these days.
paoli2paoli21,401 posts since
Aug 10, 2011
Rep Points: 6,135