Loan-To-Deposit Ratio - LTD
Definition of 'Loan-To-Deposit Ratio - LTD'A commonly used statistic for assessing a bank's liquidity by dividing the banks total loans by its total deposits. This number, also known as the LTD ratio, is expressed as a percentage. If the ratio is too high, it means that banks might not have enough liquidity to cover any unforseen fund requirements; if the ratio is too low, banks may not be earning as much as they could be. |
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Investopedia explains 'Loan-To-Deposit Ratio - LTD'In 2008, the FDIC reported that statewide LTD ratios in the |
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