One effect of the liquidity crisis in global credit markets is that corporate borrowers that might have dealt directly in the credit market are being forced to do more business with their banks.This reintermediation is apparent in ANZ's results for the half year to March. The bank's institutional division reported a 35 per cent increase in loans and advances - up from $73.2 billion in March 2007 to $98.9 billion in the latest half.Institutional deposits were up 26 per cent over the same period, from $60.1 billion to $75.5 billion.However, the bank failed to make a good return from this bounty. The division's net interest margin was 1.4 per cent, compared to the bank's overall margin of 1.99 per cent.The return on assets was 0.46 per cent, compared to the bank's ROA of 0.78 per cent. Revenue was up 16 per cent but the divisional profit of $405 million was 47 per cent down on the previous corresponding period.The division was responsible for the majority of the group's increase in impairment provisions. The individual provision charge of $371 million was made up largely of two exposures. The division's collective provision of $327 million "reflects risks which are yet to emerge", including downgrades in commercial property and broking industry exposures. In addition, the collective provision was increased to reflect faster portfolio growth. Profit before provisions was up 18 per cent. Excluding provisions, the businesses within the institutional division that had the strongest growth were markets, working capital, and corporate finance. The bank said the markets business benefited from increased volatility in global currency markets.Working capital had the benefit of higher overdraft and deposit volumes. Corporate finance was driven by strong deal activity in structured debt.ANZ Capital, which is involved in private equity, MBOs and leveraged finance made a loss of $3 million before provisions.