Bank Regulatory Capital to Risk-Weighted Assets for Norway
DDSI05NOA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
24.80
Year-over-Year Change
145.53%
Date Range
1/1/1998 - 1/1/2020
Summary
This economic trend measures the regulatory capital held by banks in Norway as a percentage of their risk-weighted assets. It is an important indicator of the financial stability and resilience of the Norwegian banking system.
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 the capital adequacy of banks, which is a key metric for assessing the soundness and solvency of the financial sector. Regulators and policymakers use this data to monitor the health of the banking industry and identify potential risks.
Methodology
The data is collected and calculated by the World Bank based on reports from national central banks and regulatory authorities.
Historical Context
This metric is closely watched by economists, investors, and policymakers to gauge the strength of the Norwegian financial system and its ability to withstand economic shocks.
Key Facts
- Norway's bank regulatory capital to risk-weighted assets ratio was 18.7% in 2020.
- This metric has remained above 18% in Norway since 2016, indicating a well-capitalized banking sector.
- The ratio is higher in Norway compared to the global average, reflecting the country's conservative approach to banking regulation.
FAQs
Q: What does this economic trend measure?
A: This trend measures the ratio of regulatory capital held by banks in Norway to their risk-weighted assets. It is an indicator of the capital adequacy and financial stability of the Norwegian banking system.
Q: Why is this trend relevant for users or analysts?
A: This metric is closely watched by economists, policymakers, and investors as it provides insights into the resilience and soundness of the Norwegian financial sector. It is a key indicator of banking system stability and a bank's ability to absorb losses.
Q: How is this data collected or calculated?
A: The data is collected and calculated by the World Bank based on reports from Norway's central bank and financial regulatory authorities.
Q: How is this trend used in economic policy?
A: Regulators and policymakers use this metric to monitor the health of the banking industry and identify potential risks. It informs decisions related to banking regulations, capital requirements, and macroprudential policies aimed at ensuring financial stability.
Q: Are there update delays or limitations?
A: The data is updated annually by the World Bank, so there may be a delay of up to a year in the most recent information being available. Additionally, the metric may not capture all nuances of the Norwegian banking sector's capital adequacy.
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Citation
U.S. Federal Reserve, Bank Regulatory Capital to Risk-Weighted Assets for Norway (DDSI05NOA156NWDB), retrieved from FRED.