Many businesses, scared of running up debt as sales fell, stopped borrowing during the economic downturn. The same NFIB survey suggests that loan demand hasn't rebounded, even as short-term interest rates have fallen. About 30 percent of survey respondents are borrowing regularly, down from about 35 percent at the beginning of the recession.Cash has flooded into banks even as the amount of money on loan has fallen. Among Mississippi commercial banks, the ratio of loans to deposits fell to 75.5 percent at Dec. 31, the lowest level in more than a decade, according to FDIC figures. The ratio of loans to deposits is even lower at BancorpSouth, with its $8.5 billion in loans equal to only 63 percent of deposits. At the end of 2007, as the real estate boom imploded, BancorpSouth had $9 billion in loans outstanding, equal to 90 percent of deposits.
Bank Sets $500 Million Loan Fund For Miss. Firms
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