Loan to stable deposit ratio: Difference between revisions

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''Bank prudential management''
''Bank prudential management''.


(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 simple loan to deposit ratio, the L/SD ratio provides a more representative measure of the bank's capacity to lend.
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).




== See also ==
== See also ==
* [[Funding]]
* [[Funding ratio]]
* [[Liquidity]]
* [[Liquidity]]
* [[Liquidity Coverage Ratio]]
* [[Liquidity Coverage Ratio]]
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* [[Loan to deposit ratio]]
* [[Loan to deposit ratio]]
* [[Loan to stable funding ratio]]
* [[Loan to stable funding ratio]]
* [[Net stable funding ratio]]
* [[Net Stable Funding Ratio]]
* [[Funding]]
 
* [[Funding ratio]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]

Latest revision as of 17:50, 1 July 2022

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).


See also