For example, at the end of last year, the loan-to-deposit ratio of the banking industry had exceeded 120% and was close to 130%, which means that for every 100 yuan of deposit, the banking industry would lend nearly 130 yuan.
The loan-to-deposit ratio Index was first put forward by the People's Bank of China in 1994 when some joint-stock banks carried out the pilot project of asset-liability ratio management. 1995, this indicator was written into the Law of People's Republic of China (PRC) Commercial Bank as one of the four indicators of asset-liability ratio management of commercial banks.