what is the loan to deposit ratio ldr 
the loan to deposit ratio ldr is used to assess a bank s liquidity by comparing a bank s total loans to its total deposits for the same period the ldr is expressed as a percentage if the ratio is too high it means that the bank may not have enough liquidity to cover any unforeseen fund requirements conversely if the ratio is too low the bank may not be earning as much as it could be investopedia crea taylorformula and calculation of the ldr ldr total loans total deposits begin aligned text ldr frac text total loans text total deposits end aligned ldr total depositstotal loans to calculate the loan to deposit ratio divide a bank s total amount of loans by the total amount of deposits for the same period you can find the figures on a bank s balance sheet loans are listed as assets while deposits are listed as liabilities 