A newly released analysis of Federal Reserve data shows banks losing capacity to meet loan growth with deposits, suggesting that many institutions must use capital markets to keep pace with double-digit loan growth.

In 1994, the 500 largest U.S. commercial banks on average saw their ratio of loans and leases to deposits surge by 4 percentage points, to 85%, according to a survey of call report data performed by Donaldson, Lufkin & Jenrette. Over the two years ended Dec. 31, the increase was 7 percentage points.

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