Loan-to-deposit ratio

How it is used

State whether loans are gross or net and which deposits enter the denominator.

Example sentences

1. The loan-to-deposit ratio increased as lending grew faster than deposits.

   Loan growth raises the ratio unless deposits keep pace.

2. The analyst recalculated the loan-to-deposit ratio using domestic-currency balances only.

   The selected balance scope affects the reported ratio.

Common collocations

• loan-to-deposit ratio trend
• gross loan-to-deposit ratio

Related terms

• loanMoney that a bank or another lender gives to a person or company, which must be paid back over time, usually with interest.
• depositMoney that you put into a bank account, or the act of putting it there. For a bank, customer deposits are its main source of funding.

More terms: Financial Statements

• balance sheet
• income statement
• asset
• liability
• equity
• revenue
• net income
• write off
• depreciation
• EBITDA
• in the red
• expense