Banks are doing okay with credit about to surpass four-fifths of deposits—so does this ratio still matter?
Further, as banks still seem to be doing a good part of the heavy lifting in the field of infrastructure finance, the bonds they issue for this purpose should be accounted for as borrowings. This component is analogous to deposits, except that they have a higher cost attached. This extra cost, however, must necessarily be borne for banks to fund long-term infrastructure projects and ensure that asset and liability maturities do not go perilously out of sync.
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