What financial ratio for banks is total loans divided by total deposits?

The financial ratio equal to total bank loans divided by total deposits is the loan-to-deposit ratio.

Usually abbreviated LDR or LTD, it compares the funds a bank has lent with the deposits that help finance those loans. For example, $80 million in loans divided by $100 million in deposits produces an 80% ratio. Analysts use it chiefly as a liquidity and funding indicator.

A lower ratio can suggest more room to meet withdrawals, though it may also mean the bank is deploying deposits less aggressively. A ratio above 100% means loans exceed deposits, so the bank relies on additional funding such as wholesale borrowing. That is not automatically dangerous, but it can increase liquidity risk.

The ratio is often confused with capital adequacy, which measures loss-absorbing capital against risk-weighted assets. It also does not directly measure profitability: interest margin, credit losses, fees, and operating costs determine whether lending is lucrative.