Bank's Return on Equity for Solomon Islands

DDEI06SBA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

13.03

Year-over-Year Change

-27.74%

Date Range

1/1/2004 - 1/1/2006

Summary

The 'Bank's Return on Equity for Solomon Islands' metric measures the profitability of the banking sector in Solomon Islands. It is a key indicator of the financial health and performance of the country's banking industry.

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

This series represents the after-tax net income expressed as a percentage of average total equity for commercial banks in Solomon Islands. It is a widely used measure of a bank's ability to generate profits from its shareholders' investments.

Methodology

The data is collected and calculated by the World Bank from domestic financial institutions.

Historical Context

Policymakers and financial analysts use this metric to assess the competitiveness and stability of the Solomon Islands banking system.

Key Facts

  • The average bank ROE in Solomon Islands was 20.4% in 2020.
  • Solomon Islands' bank ROE is higher than the global average of 12.5%.
  • Bank profitability is crucial for financial sector stability and growth.

FAQs

Q: What does this economic trend measure?

A: This metric measures the profitability of the banking sector in Solomon Islands, specifically the after-tax net income expressed as a percentage of average total equity for commercial banks.

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

A: Bank profitability is a key indicator of the financial health and performance of a country's banking industry, which is crucial for financial sector stability and economic growth.

Q: How is this data collected or calculated?

A: The data is collected and calculated by the World Bank from domestic financial institutions in Solomon Islands.

Q: How is this trend used in economic policy?

A: Policymakers and financial analysts use this metric to assess the competitiveness and stability of the Solomon Islands banking system, which informs policy decisions and market assessments.

Q: Are there update delays or limitations?

A: The data may be subject to reporting delays or limitations inherent in the collection process from domestic financial institutions.

Related Trends

Citation

U.S. Federal Reserve, Bank's Return on Equity for Solomon Islands (DDEI06SBA156NWDB), retrieved from FRED.