Loan to stable deposit ratio: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Amend link.) |
imported>Doug Williamson (Classify page.) |
||
| (One intermediate revision by the same user not shown) | |||
| Line 1: | Line 1: | ||
''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. | ||
| Line 10: | Line 10: | ||
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). | |||
== See also == | == See also == | ||
* [[Funding]] | |||
* [[Funding ratio]] | |||
* [[Liquidity]] | * [[Liquidity]] | ||
* [[Liquidity Coverage Ratio]] | * [[Liquidity Coverage Ratio]] | ||
| Line 20: | Line 25: | ||
* [[Loan to stable funding ratio]] | * [[Loan to stable funding ratio]] | ||
* [[Net Stable Funding Ratio]] | * [[Net Stable 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).
