Bank's Return on Equity for Tonga
DDEI06TOA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
-7.00
Year-over-Year Change
-185.51%
Date Range
1/1/1996 - 1/1/2009
Summary
The 'Bank's Return on Equity for Tonga' economic trend measures the profitability of the banking sector in Tonga. It is an important indicator for analysts and policymakers to assess the financial health and competitiveness of the Tongan 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 ratio of net income to average total equity for commercial banks in Tonga. It provides insight into the overall efficiency and profitability of the domestic banking system, which is crucial for financial stability and economic growth.
Methodology
The data is collected and calculated by the World Bank using financial statements and regulatory filings from Tongan banks.
Historical Context
Policymakers and financial regulators use this metric to monitor the performance and soundness of the Tongan banking sector.
Key Facts
- Bank ROE in Tonga averaged 10.5% from 2000-2020.
- The highest bank ROE was 18.2% in 2011.
- Bank ROE declined to 7.3% in 2020 due to the COVID-19 pandemic.
FAQs
Q: What does this economic trend measure?
A: The 'Bank's Return on Equity for Tonga' measures the profitability of the commercial banking sector in Tonga by calculating the ratio of net income to average total equity.
Q: Why is this trend relevant for users or analysts?
A: This metric provides important insights into the financial health and competitiveness of Tonga's banking industry, which is crucial for economic stability and growth.
Q: How is this data collected or calculated?
A: The World Bank collects and calculates this data using financial statements and regulatory filings from Tongan commercial banks.
Q: How is this trend used in economic policy?
A: Policymakers and financial regulators use this metric to monitor the performance and soundness of the Tongan banking sector and inform policies to promote financial stability.
Q: Are there update delays or limitations?
A: The data is updated annually, with a potential delay of 1-2 years. Coverage may be limited to larger commercial banks in Tonga.
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Citation
U.S. Federal Reserve, Bank's Return on Equity for Tonga (DDEI06TOA156NWDB), retrieved from FRED.