Bank Credit to Bank Deposits for United States
DDSI04USA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
53.91
Year-over-Year Change
-29.06%
Date Range
1/1/1960 - 1/1/2020
Summary
The Bank Credit to Bank Deposits ratio measures the relationship between a bank's outstanding loans and its total deposits. This metric is a key indicator of a banking system's liquidity and lending capacity.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
The Bank Credit to Bank Deposits ratio provides insight into the balance between a bank's lending activity and deposit-taking. It reflects the extent to which banks are able to fund their lending operations through customer deposits rather than other sources of financing.
Methodology
The data is calculated by the World Bank using national banking sector statistics.
Historical Context
This metric is closely monitored by policymakers, regulators, and analysts to assess financial system stability and the effectiveness of monetary policy.
Key Facts
- The higher the ratio, the more a banking system is relying on lending rather than deposits.
- Declining ratios may indicate tightening credit conditions or a buildup of systemic risk.
- Healthy banking systems typically maintain a Bank Credit to Bank Deposits ratio between 0.8 and 1.2.
FAQs
Q: What does this economic trend measure?
A: The Bank Credit to Bank Deposits ratio measures the relationship between a bank's outstanding loans and its total deposits. It reflects the banking system's liquidity and lending capacity.
Q: Why is this trend relevant for users or analysts?
A: This metric is closely monitored by policymakers, regulators, and analysts to assess financial system stability and the effectiveness of monetary policy.
Q: How is this data collected or calculated?
A: The data is calculated by the World Bank using national banking sector statistics.
Q: How is this trend used in economic policy?
A: Policymakers and regulators use this metric to gauge the health of the banking system and the impact of their policies on lending and deposit-taking activities.
Q: Are there update delays or limitations?
A: The data is published regularly by the World Bank, but there may be some delays in reporting or limitations in country coverage.
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Citation
U.S. Federal Reserve, Bank Credit to Bank Deposits for United States (DDSI04USA156NWDB), retrieved from FRED.