Loan to stable deposit ratio

Bank prudential management

(L/SD ratio).

A simple measure of a bank's funding profile, being a refinement of the 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 simple loan to deposit ratio, the L/SD ratio provides a more representative measure of the bank's capacity to lend.

See also

• Liquidity
• Liquidity Coverage Ratio
• Leverage Ratio
• Loan to deposit ratio
• Loan to stable funding ratio
• Net Stable Funding Ratio
• Funding
• Funding ratio