Banks’ Loan-Deposit Gap Widens

Outstanding loans in Iran’s banking system outpaced deposits in the month ending Nov. 20, making the gap between paid loans and banking deposits to grow for the fourth month in a row. 
That is evident from the relatively significant increase in loan to deposit ratio (LDR) during the month, according to latest data released by the Central Bank of Iran. 
LDR rose to 81.3%, 2.5 percentage point higher than the figure reported in the same month of last year. It was also 1.9% higher compared with the beginning of the current fiscal year (March, 20). 
The ratio is used to assess a bank's liquidity by comparing total loans to total deposits for a specific period and is expressed in percentage.