National Building Society Gets Aggressive As Its Loan-To-Deposit Ratio Get Past 100%

By Alvine Chaparadza

Loan-to-deposit ratios (LDR) across the banking industry have declined steadily for the last couple of years, but National Building Society(NBS) stands out in this key metric for the year ended 2017 as it registered a loan-to-deposit ratio of 115%.

The LDR is the ratio of a bank’s total outstanding loans for a period to its total deposit balance over the same period. If the ratio is too high (more than 100%) as in NBS’s case, it means that NBS is lending more than its deposits and may not have enough liquidity to …read more

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