Bank's Cost to Income Ratio for Solomon Islands

DDEI07SBA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

56.25

Year-over-Year Change

-18.44%

Date Range

1/1/2003 - 1/1/2006

Summary

The Bank's Cost to Income Ratio for Solomon Islands measures the operating costs of banks in the country as a percentage of their total income. This metric is crucial for evaluating the efficiency and profitability of the 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 Cost to Income Ratio is a widely used financial indicator that reflects a bank's operating efficiency. It shows how much a bank spends to generate each unit of revenue, with a lower ratio indicating more efficient operations.

Methodology

The data is collected and calculated by the World Bank based on reports from financial institutions in Solomon Islands.

Historical Context

Policymakers and analysts use this ratio to assess the competitiveness and soundness of the domestic banking system.

Key Facts

  • The Bank's Cost to Income Ratio for Solomon Islands was 80.7% in 2020.
  • A lower ratio indicates more efficient bank operations and higher profitability.
  • The ratio has declined from a high of 88.4% in 2015, suggesting improved efficiency.

FAQs

Q: What does this economic trend measure?

A: The Bank's Cost to Income Ratio measures the operating costs of banks in Solomon Islands as a percentage of their total income, providing a gauge of banking efficiency.

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

A: This ratio is a crucial indicator of the competitiveness and soundness of the domestic banking system, helping policymakers and analysts assess the efficiency and profitability of banks.

Q: How is this data collected or calculated?

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

Q: How is this trend used in economic policy?

A: Policymakers and analysts use this ratio to evaluate the performance and competitiveness of the banking sector, which is essential for promoting financial stability and economic growth.

Q: Are there update delays or limitations?

A: The data is subject to the reporting timeliness of financial institutions in Solomon Islands, which may result in occasional update delays.

Related Trends

Citation

U.S. Federal Reserve, Bank's Cost to Income Ratio for Solomon Islands (DDEI07SBA156NWDB), retrieved from FRED.