UK Government controls and loan-to-deposit ratio

Purpose This paper aims to present an analysis of the UK bank loans and deposits in tandem, linking loan-to-deposit (LTD) ratio macroprudential policy funding restrictions. LTD is used by micro authorities address both structural (long-term) cyclical (short-term) liquidity risks. It outcome several political economic factors should be evaluated against this background. Design/methodology/approach The authors use trend panel regression investigate Major British Banking Groups from 1945 2012 midst changing Government policies. Findings results show that wholesale funding, government intervention repression were major forces behind trends. Originality/value recommend as a complement other ratios macro-prudential regulation, particularly context current reforms banking capital requirements.