Business And Markets

Loan to Deposit Ratio at 80%

Loan to Deposit Ratio at 80%
Loan to Deposit Ratio at 80%

Loans to deposit ratio stood at 80.2% at the end of first calendar month on April 21, up 1.7 percentage points compared to the same period last year.
The ratio, however, was unchanged compared to the preceding month. LDR in Tehran Province was higher than the average at 94.3%, according to data released by the Central Bank of Iran.
LDR is used to assess a bank's liquidity by comparing total loans to total deposits for a specific period and is expressed in percentage.
If the ratio is too high, the bank may not have enough liquidity to cover unforeseen fund requirements. Conversely, if it is too low, the bank may not be earning as much as it should be.


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