Economic Thought and Practice, , 2026.
Preliminary communication
https://doi.org/10.17818/EMIP/2026/28
THE LOAN-TO-DEPOSIT RATIO OF BANKS IN INTERACTION WITH INDICATORS OF OPERATIONS AND MACROECONOMIC INDICATORS - EVIDENCE FROM CROATIA
Ante Samodol
orcid.org/0000-0002-6609-2396
; Libertas International University, Zagreb, Croatia
*
Sonja Brlečić Valčić
; University of Zadar, Croatia
* Corresponding author.
Abstract
This paper examines the loan-to-deposit ratio (LDR) in the Croatian banking system from 2016 to 2025 and its relationship with operational efficiency (CIR), profitability (ROE), and macroeconomic conditions (GDP and CPI). LDR is considered a nonlinear, context-dependent mechanism linking funding structure, efficiency, and profitability. Using hierarchical clustering and an Adaptive Neuro-Fuzzy Inference System (ANFIS), the study identifies clear structural relationships: LDR is strongly connected with operational efficiency, ROE emerges as an intermediate outcome, while GDP and CPI constitute a separate macroeconomic dimension. The results indicate that high profitability occurs only under specific combinations of LDR, CIR, and stable macroeconomic conditions, whereas strong economic growth or higher inflation reduce efficiency and profitability. High CIR is identified as the main limiting factor. The findings suggest that bank performance depends on the interaction between internal and macroeconomic conditions in deposit-rich, bank-based economies.
Keywords
banks; loan-to-deposit ratio; banking and macroeconomic indicators; ANFIS
Hrčak ID:
347638
URI
Publication date:
8.6.2026.
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