Credit-Deposit Ratio Calculator

Calculate Credit-Deposit Ratio



Formula

The formula to calculate the Credit-Deposit Ratio (CDR) is:

\[ CDR = \frac{TA}{TD} \]

Where:

What is Credit-Deposit Ratio?

The Credit-Deposit Ratio (CDR) is a financial metric that indicates the proportion of a bank's total deposits that are being used to fund loans and advances. It helps in assessing the liquidity and efficiency of a bank's use of its deposits.

Example Calculation

Let's assume the following values:

Using the formula to calculate the Credit-Deposit Ratio (CDR):

\[ CDR = \frac{TA}{TD} = \frac{1,000,000}{1,500,000} = 0.67 \]

The Credit-Deposit Ratio (CDR) is 0.67.