Central Bank of Iran Says Bank Deposits Growing
EghtesadOnline: Deposits in Iranian banks and credit institutions totaled 20,223 trillion rials ($155 billion) during the eleven-months to Feb 19, up 32% compared to the same period a year ago.
The deposits include both in rials and foreign currency.
Tehran Province topped the list with 11,367 trillion rials ($87 billion) while Kohgiluyeh and Boyer-Ahmad Province had 52.7 trillion rials (less than $0.5 billion) deposits.
The CBI also reported on lending by banks. In sum, lenders paid 14,573 trillion rials ($112 billion) in loans, posting a 26.4% growth compared to the corresponding period a year before, according to Financial Tribune.
According to the CBI, Tehran was the major borrower during the period. Loans to the tune of 9,477 trillion rials ($72 billion) were paid in the capital. This was followed by provinces of Isfahan and Khorasan Razavi with 541.5 trillion rials ($4 billion) and 463.8 trillion rials ($3.5 billion) respectively.
It merits mention that the head offices of most businesses in the country are in Tehran and this apparently gives rise to banking activities (demand for loans, credits and other financial assistance) in the sprawling metropolis.
Loan-to-deposit ratio (LDR) stood at 80.2% during the period, which shows a 5.2% decline compared to the corresponding period a year before. The ratio in Tehran and Kohgiluyeh and Boyer-Ahmad provinces stood at 91.9% and 107.4, respectively.
LDR is used to assess a bank's liquidity by comparing the bank's total loans to its total deposits for a specific period. The LDR is expressed as a percentage. If the ratio is too high, it means that the bank may not have enough liquidity to cover any unforeseen fund requirements.
Conversely, if the ratio is too low, the bank may not be earning as much as it should be.