Monitoring Loan-to-Deposit Ratios (LTD) of Aegean Region by Quality Control Charts
`Banks within economic system and performing a bridge between sectors having surplus fund with sectors that
need fund are one of the most important organizations in the development of financial markets. Loans granted to businesses
and individuals by banks play an important role in the revival of domestic demand and investment financing. What
proportion of deposits collected could be converted to loans is one of the important indicators that revealed the efficiency of
the banking system. In this study, the period 1993-2014 annual data related to loan-to-deposit ratio in the 8 cities located in
the Aegean Region in Turkey were analyzed by using quality control charts. According to the result of the analysis, it is
understood that loan/deposit ratios did not show statistical stability and had an increasing trend for all cities surveyed.
Furthermore, it is identified that deposit could not fund the loanexcept for “Uşak” and “Muğla”, the growth of loans were
much than the growth of deposits in the cities. These findings suggest that the liquidity situation of banks are likely to be
adversely affected in case of there is a disruption in the collection of loans.
Keywords— Banks, Loan to Deposit Ratio, Control Charts.