Definition
Financing to Deposit Ratio – The Sharia-banking equivalent of the Loan-to-Deposit Ratio»: a Sharia business unit's total financing (its interest-free lending equivalent) divided by the funds it holds from depositors. Measures the same liquidity concept as LDR, just for a Sharia unit whose "loans" and "deposits" are structured as financing and profit-sharing/wadiah arrangements rather than conventional interest-bearing products. Found In: Notes to Financial Statements (Sharia/Islamic business unit segment disclosure) Formula:
FDR = Total Sharia Financing / Total Sharia Deposits