Loan to Deposit Ratio Calculator
Assess a bank's liquidity and risk profile using the Loan to Deposit Ratio. Determine if an institution is over-leveraged or under-utilizing capital.
Loan to Deposit Ratio Calculator
Assess a bank's liquidity and risk profile using the Loan to Deposit Ratio. Determine if an institution is over-leveraged or under-utilizing capital.
How to Use Loan to Deposit Ratio Calculator in 3 Easy Steps
1
Step 1
Input the bank's Total Outstanding Loans from the asset side of the balance sheet.
2
Step 2
Input the bank's Total Customer Deposits from the liability side.
3
Step 3
Toggle wholesale funding for strict "Core Deposit" analysis parameters.
Frequently Asked Questions
A ratio over 100% means the bank has lent out more cash than it holds in deposits. It must fund the deficit by borrowing from other banks or issuing bonds, driving up its cost of capital drastically.
Central banks mandate that commercial banks hold a specific percentage of deposits (e.g., 10%) completely un-lent in vaults. This caps the maximum legal LDR a bank could theoretically run at.
It signifies high liquidity and zero risk of a bank run, but it also signals poor management. The bank is failing its primary economic directive: extending credit and generating yield for shareholders.