Loan
to deposit
ratio is one financial
ratio that illustrates the
comparison between the amount of
credit given to the amount of funds available. Funds are available
in the form of savings and deposits collected from
third parties. Loan to deposit ratio (LDR) has
become one of the bank's
financial ratios are very guarded. Because
of this financial ratio will determine the sustainability of a financial services business of banking.
Good ratio for a
loan to deposit ratio is between 85-95%. If the
LDR is more than
95% of the loan
portfolio is less effective.
It also shows the weakness of banks in
maintaining liquidity. Similarly
if the ratio Loan
to deposit ratio at well below 85%, ie
75%, it also
shows the weakness of the banking managers in
pennyaluran weak credit.
Existing funds tend to be restrained and less
effective in gaining revenue.
The formula for calculating the "LDR" is as follows:
Loan to deposit ratio = Equity + Third Party Funds
So what is Equity? Equity is simply the entire amount of the asset by the entity after deducting liabilities.
Necessary prudence in managing the financial ratio LDR. because it is closely related to how much revenue is earned and how much risk of default will be borne by the bank. Hopefully this article useful to you.
The formula for calculating the "LDR" is as follows:
Loan to deposit ratio = Equity + Third Party Funds
So what is Equity? Equity is simply the entire amount of the asset by the entity after deducting liabilities.
Necessary prudence in managing the financial ratio LDR. because it is closely related to how much revenue is earned and how much risk of default will be borne by the bank. Hopefully this article useful to you.
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