Research on the Current Situation, Problems and Countermeasures of Low Loan-to-Deposit Ratio in Chaozhou City

DOI: https://doi.org/10.62517/jel.202514603

Author(s)

Yudi Guo, Danping Qiu

Affiliation(s)

Guangzhou College of Commerce, Guangzhou, Guangdong, China

Abstract

In 2015, our county canceled the stipulation that the loan-to-deposit ratio of commercial banks should not exceed 75%, and adjusted the loan-to-deposit ratio from a statutory regulatory indicator to a liquidity risk monitoring indicator. The move gives the autonomy in operation of the banking institutions more, actively promote the reform of the banking industry innovation, to create better financial environment. This article takes the issue of the low loan-to-deposit ratio in Chaozhou City as the research object. By analyzing the current situation of the loan-to-deposit ratio and the flow of loans in Chaozhou City, it deeply dissects the impacts brought by the low loan-to-deposit ratio. On the basis of this research, this paper puts forward countermeasures and suggestions such as financial capital anchoring the “local circulation of funds”, doing a good job in matching the financing demand and supply of smes, strengthening the effect of “economic and financial linkage”, cultivating high-quality loan scenes, and promoting the “transformation of bank credit culture”, so as to provide reference for improving the deposit and loan ratio of Chaozhou and promoting the development of local economy.

Keywords

Loan-to-Deposit Ratio; Loan Status; Impact Analysis; Countermeasure Research

References

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