Loan to deposit ratio: Difference between revisions
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The L/D ratio divides the bank's loans by its deposits. | The L/D ratio divides the bank's loans by its deposits. | ||
Both the loans and the deposits measure may be defined in different ways by different banks, so consistency of approach and definition are essential to ensure comparability. | |||
Revision as of 12:31, 17 November 2016
Bank prudential management
(L/D ratio).
A simple measure of a bank's funding profile.
The L/D ratio divides the bank's loans by its deposits.
Both the loans and the deposits measure may be defined in different ways by different banks, so consistency of approach and definition are essential to ensure comparability.
