Since all such receipts and payments pass  2  BIS Review 113/2006  through the banking system, this increasing openness of the economy has also added to financial deepening, while aiding the acceleration in economic growth (Annex Table 2). The high credit growth witnessed in recent years has, however, not been matched by adequate deposit growth.
The growth in deposits since 2001-02 has been far lower than that required to support overall credit expansion (Graph 1). Banks have been financing much of the incremental credit expansion by unwinding their surplus investments in government securities.