Loan to stable deposit ratio: Difference between revisions
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imported>Doug Williamson (Amend link.) |
imported>Doug Williamson (Update.) |
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(L/SD ratio). | (L/SD ratio). | ||
A simple measure of a bank's funding profile, being a refinement of the loan to deposit (L/D) ratio. | A simple measure of a bank's funding profile, being a refinement of the (even simpler) loan to deposit (L/D) ratio. | ||
The L/SD ratio divides the bank's loans by its stable deposits. | The L/SD ratio divides the bank's loans by its stable deposits. | ||
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Deposits which are regarded as 'non stable' are excluded from the calculation. | Deposits which are regarded as 'non stable' are excluded from the calculation. | ||
Compared with the | Compared with the simpler loan to deposit ratio, the L/SD ratio provides a more representative measure of the bank's capacity to lend. | ||
An even more refined measure is the Net Stable Funding Ratio (NSFR). | |||
Revision as of 12:25, 18 December 2016
Bank prudential management
(L/SD ratio).
A simple measure of a bank's funding profile, being a refinement of the (even simpler) loan to deposit (L/D) ratio.
The L/SD ratio divides the bank's loans by its stable deposits.
Deposits which are regarded as 'non stable' are excluded from the calculation.
Compared with the simpler loan to deposit ratio, the L/SD ratio provides a more representative measure of the bank's capacity to lend.
An even more refined measure is the Net Stable Funding Ratio (NSFR).
