Bank Regulatory Capital to Risk-Weighted Assets for Luxembourg
DDSI05LUA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
24.32
Year-over-Year Change
57.91%
Date Range
1/1/1998 - 1/1/2020
Summary
This economic trend measures the ratio of bank regulatory capital to risk-weighted assets in Luxembourg. It serves as an indicator of the financial soundness and resilience of the Luxembourg 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 regulatory capital to risk-weighted assets ratio reflects a bank's capitalization level and its ability to absorb potential losses. This metric is closely monitored by regulators and analysts to assess the overall stability and risk profile of the banking system.
Methodology
The data is collected and calculated by the World Bank based on reports from Luxembourg's central bank and financial institutions.
Historical Context
This trend is closely watched by policymakers, central banks, and financial market participants to gauge the health of the Luxembourg banking sector and its resilience to economic shocks.
Key Facts
- Luxembourg's bank regulatory capital to risk-weighted assets ratio was 26.78% in 2020.
- This ratio has remained above 25% since 2015, indicating a well-capitalized banking sector.
- The ratio serves as a key metric for monitoring Luxembourg's financial sector resilience.
FAQs
Q: What does this economic trend measure?
A: This trend measures the ratio of bank regulatory capital to risk-weighted assets in Luxembourg. It reflects the capitalization level and loss-absorbing capacity of the Luxembourg banking sector.
Q: Why is this trend relevant for users or analysts?
A: This metric is crucial for assessing the financial soundness and stability of the Luxembourg banking system. It helps regulators, policymakers, and market participants evaluate the resilience of the sector to economic shocks and financial risks.
Q: How is this data collected or calculated?
A: The data is collected and calculated by the World Bank based on reports from Luxembourg's central bank and financial institutions.
Q: How is this trend used in economic policy?
A: Policymakers, central banks, and financial market participants closely monitor this trend to gauge the health of the Luxembourg banking sector and its ability to support economic growth and withstand potential crises.
Q: Are there update delays or limitations?
A: The data is published annually with a lag, so there may be a delay in accessing the most recent figures. Additionally, the metric may not capture all nuances of the Luxembourg banking sector's risk profile.
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Citation
U.S. Federal Reserve, Bank Regulatory Capital to Risk-Weighted Assets for Luxembourg (DDSI05LUA156NWDB), retrieved from FRED.