Banks borrow so that they can lend. In 2007 New Zealand banks collectively sourced just under 40% of their deposits from households, but lent households 53.1% of their funds. Banks sourced nearly one-fifth of their finances overseas but lent overseas borrowers only 2.3% of their funds.
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Te Ara - The Encyclopedia of New Zealand
This item is licensed under a Creative Commons Attribution-NonCommercial 3.0 New Zealand Licence
Source: Reserve Bank of New Zealand
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