Bank's Overhead Costs to Total Assets for Tonga

DDEI04TOA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

3.64

Year-over-Year Change

-17.30%

Date Range

1/1/1996 - 1/1/2009

Summary

This economic trend measures the ratio of total overhead costs to total assets for banks in Tonga. It provides insight into the operational efficiency and profitability of the Tongan banking sector.

Analysis & Context

This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.

Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.

About This Dataset

The Bank's Overhead Costs to Total Assets ratio is a key indicator of a bank's operational efficiency. It represents the proportion of a bank's total assets that are consumed by overhead expenses such as staff compensation, rent, and other administrative costs.

Methodology

The data is collected and calculated by the World Bank from financial reports submitted by banks in Tonga.

Historical Context

This metric is used by policymakers, regulators, and analysts to assess the health and competitiveness of the Tongan banking industry.

Key Facts

  • Tonga's bank overhead costs averaged 5.8% of total assets in 2020.
  • Lower overhead ratios indicate more efficient banking operations.
  • Tonga's ratio is higher than the global average of 3.5% for developing economies.

FAQs

Q: What does this economic trend measure?

A: This trend measures the ratio of total overhead costs to total assets for banks operating in Tonga. It is an indicator of a banking sector's operational efficiency.

Q: Why is this trend relevant for users or analysts?

A: The bank overhead cost ratio is an important metric for assessing the profitability and competitiveness of the Tongan banking industry. It provides insight into the operational efficiency of banks and can inform policy decisions.

Q: How is this data collected or calculated?

A: The data is collected by the World Bank from financial reports submitted by banks in Tonga and calculated as the ratio of total overhead expenses to total assets.

Q: How is this trend used in economic policy?

A: Policymakers and regulators use this metric to monitor the health and competitiveness of the Tongan banking sector, which is crucial for supporting economic growth and financial stability.

Q: Are there update delays or limitations?

A: The data is published annually by the World Bank with a delay of approximately one year. There may be limited coverage for smaller or less-developed banking sectors.

Related Trends

Citation

U.S. Federal Reserve, Bank's Overhead Costs to Total Assets for Tonga (DDEI04TOA156NWDB), retrieved from FRED.