Effective from Jun 01 2023 - May 31 2023
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4.1	The Loans to Deposits Ratio is defined as net loans divided by deposits after applying weights:
4.2	Net Loan (The numerator) for the purpose of these guidelines, includes Loans and advances after deducting the following :
	•	Provisions for loan losses;
	•	Unearned commissions income;
	•	Commission in suspense.
4.3	Deposits (The denominator) for the purpose of these guidelines, includes the following components:
	a.	Deposits and Repos.
	b.	Long Term Debts:
		•	Sukuks/ Bonds;
		•	Syndicated debts;
		•	Subordinated debts;
		•	Other Debts (any other long term debts not classified above).
4.4	For avoidance of doubt, interbank transactions and transactions with SAMA should not be included in the LDR calculation, unless specifically stated by SAMA.
4.5	SAMA expects banks to maintain total LDR below 90%, Subject to numerator not exceeding unweighted denominator.