Data released by the FDIC this week suggests that banks are lending a smaller proportion of deposits than ever before.
On Tuesday, the FDIC released its Quarterly Banking Profile. Among other things, the data showed that the bank industry's loans-to-deposits ratio is at a historic low. In the video following the chart, Motley Fool contributor John Maxfield explains why this doesn't necessarily mean banks are lending less than ever before.
Source: FDIC's Quarterly Banking Profile.
John Maxfield owns shares of Bank of America. The Motley Fool recommends Wells Fargo. The Motley Fool owns shares of Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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