Loan-to-deposit ratio is also one of the indicators used to measure the liquidity risk of banks. Theoretically, when loan-to-deposit ratio is high, banks can use more loans, which is a good thing for local high-quality enterprises that need financing and is conducive to the development and growth of such enterprises. (But at the same time, avoid redundant construction when funds are abundant. ) When I was young, it may not be conducive to the development of enterprises, especially small and medium-sized enterprises, but it may also avoid the emergence of new non-performing assets.

Part of the bank's deposits should be deposited in the People's Bank of China, which is called deposit reserve. Part of the funds should be reserved for normal cash flow and the rest can be used for loans. For example, if a bank has a deposit of 6,543.8+0,000, and the People's Bank of China assumes that it has 6,543.8+0,000 and 6,543.8+0,000 for daily cash turnover, then only 800,000 funds can be used freely, and most of the bank's profits depend on the interest difference between deposits and loans (if 6,543.8+0,000 deposits are deposited for a certain period, the deposit interest rate is 3% and the loan interest rate is 6. If there are few loans and many deposits, banks may cause losses.

Loan-to-deposit ratio is simply the ratio of deposits to loans. This ordinary bank is used to evaluate employees. If customers save more money and borrow less, banks will lose money. On the contrary, if there are not many deposits and many loans, banks will earn more. If the loan exceeds a certain amount and the bank's free funds are gone, it is possible to raise funds through inter-bank lending (that is, one bank borrows money from another bank). The interest of interbank borrowing is higher than that of customers.

Therefore, the more customers deposit (preferably current deposit with low interest rate), the more loans they borrow and the more money banks earn.

Therefore, banks generally use loan-to-deposit ratio to evaluate employees' salary performance.

Loan-to-deposit ratio = total bank loans/total deposits.

For banks, of course, the higher the better, the higher the profitability of banks. But loan-to-deposit ratio can't "; 1。

When depositors deposit money in the bank, the bank must pay interest to others. Assuming that the bank does not lend, then the bank will have no income but expenditure, and will close sooner or later.

Banks have to lend money for profit, which is why the loan interest is higher than the deposit interest.

Profit = revenue-cost

Banks with high loan-to-deposit ratio have high income and high profits. On the contrary, the loan-to-deposit ratio of low income and low profit. Nowadays, banks, like enterprises, are also pursuing profits. Of course, they want a high loan-to-deposit ratio!