COMMERCIAL banks have been busy lending large amounts of money at below-the-market rates these last few weeks. They aren’t doing so because they suddenly find themselves flushed with excess liquidity. Nor has the economy turned a page, spurring demand for credit for investments in productivity. There is a method to this madness. The banks are on a lending spree to increase their advance-to-deposit ratio (ADR) … Continue reading Situationer: Is ADR tax distorting banking market?