## figure2-3

## Source details

**Canonical URL:** [figure2-3](https://www.imf.org/-/media/files/publications/gfsr/2017/april/figure2-3.pdf)

## Other formats

- [Markdown version](/-/media/files/publications/gfsr/2017/april/figure2-3.pdf.md)
- [Structured JSON version](/-/media/files/publications/gfsr/2017/april/figure2-3.pdf.json)

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### 1. Rates
- Axis labels and scale shown: 0.0, 0.5, 1.0, 1.5, 2.0, 2.5, 3.0, 3.5, 4.0, 4.5 and 2.0 1.5 1.0 0.5 0.0 –0.5 (percent scale).
- Series illustrated: Lending rates; Market rates; Deposit rates.

### 2. Ratios (Profitability)
- Axis labels and scale shown: 0, 1, 2, 3, 4, 5, 6, 7, 8 and 2.0 1.5 1.0 0.5 0.0 –0.5 (percent scale).
- Series illustrated: Return on equity; Net interest margin; Return on assets.

### 3. Deposits and Loans
- Axis labels and scale shown: 0.0, 0.5, 1.0, 1.5, 2.0, 2.5 and 2.0 1.5 1.0 0.5 0.0 –0.5 (percent scale).
- Series illustrated: Deposits; Loans; Loans-to-deposits ratio.

### 4. Leverage
- Axis labels and scale shown: 0, 2, 4, 6, 8, 10, 12, 14, 16 and 2.0 1.5 1.0 0.5 0.0 –0.5.
- Series illustrated: Assets-to-equity ratio.

### 5. Domestic and Foreign Loans
- Axis labels and scale shown: 0.0, 0.1, 0.1, 0.2, 0.2, 0.3, 0.3, 0.4, 0.4, 0.5 and 2.0 1.5 1.0 0.5 0.0 –0.5 (percent scale).
- Series illustrated: Domestic loans; Foreign loans.

### 6. Net Interest Margins
- Axis labels and scale shown: 0.0, 0.5, 1.0, 1.5, 2.0, 2.5 and 2.0 1.5 1.0 0.5 0.0 –0.5 (percent scale).
- Series illustrated: Net interest margins (without foreign loans); Net interest margins (with foreign loans).

### Key theoretical predictions and mechanisms (as depicted)
- "Deposit spreads are squeezed at low rates ..."
- "... compressing margins and profits."
- "Deposit inflows invested in bonds ...... raise bank leverage."
- "Banks respond by expanding lending abroad ..."
- "... to maintain margins and profits."

*Source: IMF staff calculations (see Box 2.1).*

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_Source: https://www.imf.org/-/media/files/publications/gfsr/2017/april/figure2-3.pdf_