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The ratio of financial institution loans to deposits bucked a rising development that lasted for six straight months, indicating warning of banks to lend.
Mortgage-to-deposit ratio (LDR) of banks and credit score establishments stood at 81.9% by the tip of the second calendar month (completed Might 21), down 1.three share factors in comparison with the start of the fiscal yr in March 21, 2022.
LDR is used to evaluate a financial institution’s liquidity by evaluating the overall loans to complete deposits for a particular interval and is expressed in share.
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