The liquidity position of the Eurozone banking sector appears to have improved in recent years, as evidenced by a drop in the loan-to-deposits ratio (LDR). For countries participating in the Single Supervisory Mechanism (SSM), in Q2-2015 the LDR ratio stood at 126.6%, but by Q3-2022 that ratio had fallen to 104.8%, suggesting more of a balance between banks' deposits base and loans extended to customers.

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