In the Indian context an incremental credit-deposit ratio of more than 100 per cent, when the system itself has a high overall absolute credit deposit ratio (say beyond 70 per cent) is taken as a sign of overheating. A prudential focus on credit deposit ratio also encourages the banks to raise deposits for funding credit flow and minimizes the use of purchased funds.
In late 2012 the interest rate on one-year government bonds was 11.9%, whereas today the rate on our 12-year bonds is 3.4%. It is this difference between interest rates and the maturity of dinar government bonds that all the results and Serbia’s significantly improved reputation worldwide are reflected in (only three years ago, on 7 February 2017, the rate on one-year bonds was 3.48%).