For banks with more than $ billion in assets, core deposit holdings are only 39 percent. Community banks have experienced only moderate diminishment in the share of core deposits funding assets, but when that trend is coupled with rapid loan growth, pressures on bank liquidity appear to have intensified. Community banks have funded the gap between loan and deposit growth largely by liquidating investments.
We have been canvassing the idea of establishing a Select Committee of the National Assembly for hearings of the Governor and his associates on the Bank’s policies and strategies. We believe this will help to clear the air and expose the sensational headlines to more rational debate. Indeed, we have plenty of reason to be satisfied with our record so far.