Bangladesh: Liquidity glut in banks
Published 14 Dec,2020 via The Financial Express - The advance-deposit ratio (ADR) of the country's banking sector dropped in September 2020 as stimulus money and remittances swelled deposits as against slower credit growth, bankers say.
The ADR - a ratio between deposits and credit at any point of time-of all banks came down to 74 per cent as on September 24 from 76.22 per cent as on June 30 this year. It was 77.34 per cent as on December 31, 2019.
Though loan is not a liquid asset for banks, deposits are the main source of banks' liquidity. The ADR indicates the portion of deposits used to extend the credit.
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The Financial Express