what is a risky loan to deposit ratio 
market practices would indicate that a loan to deposit ratio ldr that is above 80 is risky this signals that a bank has low liquidity and could have difficulty paying its depositors their funds the bottom linethe loan to deposit ratio ldr helps assess a bank s liquidity by comparing its total loans to its total deposits this provides insight into how much risk a bank has taken on and if it would be able to meet its liquidity requirements pay depositors in a market crunch too high of an ldr indicates a bank may have difficulty meeting its obligations while too low of an ldr would indicate a bank is not using its deposits efficiently 