External loans and deposits of reporting banks vis-à-vis the nonbanking sectors (% of domestic bank deposits)

This indicator provides a comprehensive view of the financial interactions between reporting banks and nonbanking sectors, reflecting the significance of external loans and deposits as a percentage of total domestic bank deposits. Sourced from the BIS Statistical Appendix Table 7B and complemented by International Financial Statistics data, this metric utilizes end-of-year figures to capture year-end financial dynamics. Analyzing this ratio offers insights into the banking sector's reliance on external financing relative to its domestic deposit base, highlighting the liquidity risks and potential shifts in funding sources. Additionally, it serves as a barometer for economic stability, revealing how well banks are cushioning themselves against external shocks and their ability to support local enterprises through robust deposit channels. Source: