The ratio of loans to deposits at the end of the first calendar month on April 21 was 80.2%, which is 1.7 percentage points more than in the same period last year.
However, the ratio remained unchanged from the previous month. LDR in Tehran province was 94.3% above average, according to data released by Iran’s Central Bank.
LDR is used to assess the liquidity of a bank by comparing the total amount of loans with the total amount of deposits for a certain period and is expressed as a percentage.
If the ratio is too high, the bank may not have enough liquidity to cover unforeseen fund requirements. Conversely, if it is too low, the bank may not be making as much as it should.