Loan-to-Deposit Ratio (LDR)

Measures a bank’s liquidity by comparing its total loans to its total deposits.

Conventional Bank
Neobank

glossary

Definition

LDR – Measures a bank’s liquidity by comparing its total loans to its total deposits. A lower ratio indicates greater liquidity.
Found In: Balance Sheet Formula:

Loan-to-Deposit Ratio = Total Loans / Total Deposits