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If the banks want to increase their volume of loans, can they borrow by issue of bonds and by other means to augment their resources
If the banks want to increase their volume of loans, can they borrow by issue of bonds and by other means to augment their resources for lending? If they can borrow, what, in your opinion, will be the optimum ratio of total borrowings (including deposits) to total loans given by banks and ratio of total deposits (excluding other borrowings) to total loans given by banks? Will such borrowing have other implications on the financial performance of the banks? Analyse.
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