Shrinking Loan-To-Deposit Ratios Remain Cause For Concern Among Banks

While U.S. Bancorp lends almost 90 cents for every dollar in deposits it has, the figure for JPMorgan is just 58 cents to the dollar. This is due to the fact that U.S. Bancorp has an extremely risk-averse business model that focuses almost entirely on traditional banking services, and its regional focus also supports its high loan-to-deposit ratio. On the other hand, the two banking groups at the bottom of the table ? JPMorgan and Citigroup ? have significant custody banking services, which requ...