Why banks are keeping a tight leash on your cash

A National Bank of Kenya banking hall. A recent study shows loan-to-deposit ratios for most banks are on the rise. [PHOTO: WILBERFORCE OKWIRI/standard]

If the majority of customers showed up on the doorsteps of their banks and demanded their deposits today, chances are most of them would be turned away empty-handed.

It has emerged that most commercial banks may not have enough liquidity to cover any unforeseen fund requirements as their deposits and loans almost tally and in some cases, the loans are more than the deposits.