Does the subject want to ask "what are the disadvantages of the balance index of local and foreign currency deposits and loans?" The disadvantage of the balance index of local and foreign currency deposits and loans is that the index is relatively simple and is greatly affected by foreign exchange fluctuations.

1, the indicator is relatively simple: the balance indicator of local and foreign currency deposits and loans only reflects the total amount of deposits and loans of banking financial institutions, without considering other important factors, such as deposit and loan interest rates, deposit and loan term and asset quality. Therefore, there will be some errors and deficiencies in measuring the contribution and risk level of banking financial institutions only by the balance index of local and foreign currency deposits and loans.

2. Affected by foreign exchange fluctuations: the balance index of local and foreign currency deposits and loans reflects the total balance of local and foreign currency deposits and loans, while the amount of foreign currency deposits and loans is usually affected by the foreign exchange market, such as exchange rate fluctuations and changes in foreign exchange supply and demand. These factors may lead to fluctuations in the balance index of local and foreign currency deposits and loans, and affect the accuracy and stability of the index.