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The high loan to deposit ratios of European banks and short term borrowings from money markets

06/10/2012

The loan to deposit ratios for European banks are on average over 110%. For U.S. banks it is about 78%. This means banks rely on borrowed money from money markets and other institutions, for loans made in excess of the deposits made at the banks. The borrowings are on a short term basis. The loan to deposit ratios for Spanish banks are about 160% for Bankia, and 115% for Banco Santander. The situation is similar in Italy.

Grouped Articles

Return of Long-Term Bond Buyers Seen as Crucial to Europe

New York Times 06.29.2012

In Europe, Banks Borrowing to Stay Ahead of the Tide

New York Times 06.10.2012

Europe’s Mightiest Banks Still Grapple With Crisis

New York Times 06.27.2012

Bundesbank Stresses Divide on Bond Buying

Wall Street Journal 08.02.2012


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