Loan to Deposit Ratio is(LDR) is the ratio of loan to deposit. It is the proportion of deposit received by bank that they give out to their customers as loan.
Hence, the LDR is expressed in Percentage.
It is expressed as the Total loan divided by the Total Deposit Received.
Most times, the LDR is usually less than 1 so as to enable Bank's 🏦 to meet up with other obligations.
Loan to Deposit Ratio is(LDR) is the ratio of loan to deposit. It is the proportion of deposit received by bank that they give out to their customers as loan.
Hence, the LDR is expressed in Percentage.
It is expressed as the Total loan divided by the Total Deposit Received.
Most times, the LDR is usually less than 1 so as to enable Bank's 🏦 to meet up with other obligations.