Loan to Deposit Ratio at New Highs

The loan-to-deposit ratio (LDR) to deposit hit a new high in the month ending May 21, indicating banks’ ability and willingness to improve lending.
LDR increased to 81.6%, the highest in the past two and half years based on data seen on the Central Bank of Iran website.
The ratio was 4.6 percentage points higher than the corresponding month in the last fiscal year. The ratio reached its peak at 85.5% in the beginning of 2018-19 and declined to 76.5% in the month to July 22, 2020.
LDR has increased steadily since July 2020, indicating that loans is outpacing deposits.  The 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.