Banks' liquidity buffers shrink as deposits lag credit growth
Published on: Feb. 25, 2026, 12:36 a.m. | Source: The Economic Times
Banks are confronting mounting liquidity pressures as loan portfolios expand faster than deposit bases. As a result, liquidity coverage ratios have weakened across a broad set of institutions. Even with abundant liquidity in the wider financial system, banks are struggling to bring in new deposits, pushing up near-term funding costs.
