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Deposit to Loan Ratio
Answer by Randy Carey and Andy Zavoina, BOL Gurus
Guru Bio
Question: Is deposit to loan ratio regulated and if so, what agency regulates them?
Answer by Randy Carey: I'm not sure what is meant by "regulated". A deposit to loan ratio is merely a formula (total deposits divided by total loans) that results in a ratio. There is no requirement for a bank to maintain any specific ratio, although a very high or low ratio may point to specific issues within a bank's balance sheet.
Answer by Andy Zavoina:
As to being used in a regulation, this is something I tracked for CRA as a small bank. The lending test will review your loan to deposit ratio and look at your trend, §228.26(b)(1). You'll also make this (by quarter) a part of your public file, §228.43 (b)(3)(i).
First published on BankersOnline.com 3/24/08
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