EghtesadOnline: Bank Melli Iran's loan-to-deposit ratio is now 90%, which is considered acceptable, the CEO of the bank has said.
"BMI adheres to the principles of financial and credit ratios emphasized by the Central Bank of Iran," Mohammad Reza Hosseinzadeh was also quoted as saying by BMI's website. Hosseinzadeh noted that BMI is highly sensitive to CBI's directives and regulations. "Monetary discipline is of the highest importance for BMI," he added. The CBI had earlier warned about some banks' LTD ratios surpassing 100%. LTD is the ratio of a bank’s total outstanding loans for a period to its total deposit balance over the same period. So an LTD figure of 100% indicates that a bank lends a dollar to customers for every dollar that it brings in as deposits, which also means that the bank does not have significant cash on hand for contingencies, Financial Tribune reported.