Business And Markets

LDR Decline Continues  

LDR Decline Continues  
LDR Decline Continues  

The ratio of loans to deposits has declined for three months until June 21. 
It was 81.7% at the end of Q1, which was 1.6 percentage points lower on mid-April when it stood at 83.3%, the Central Bank of Iran reported Monday. 
LDR is used to assess a bank's liquidity by comparing the 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 the ratio is too low, the bank may not be earning as much as it should be.


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