1 | The China Banking Regulatory Commission (CBRC), which overlooks the industry, requires banks in the country to have a loan-to-deposit ratio of no higher than 75 percent. | |
2 | With a relatively low loan-to-deposit ratio of 68 percent, banks' propensity to lend seems intact. | |
3 | Banks have an average loan-to-deposit ratio of only 67%, low by international standards, and less than 5% of banks' loans are non-performing, down from 40% in 1998. | |
4 | Perhaps what the savings and loan and now the broader financial-industry crises reveal is the danger of partial deregulation. | |
5 | This encourages risk taking that is excessive from an overall social standpoint and was the major factor in the savings and loan collapse of the 1980s. |