Liquid Assets to Deposits and Short Term Funding for Bangladesh

DDSI06BDA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

14.69

Year-over-Year Change

-15.28%

Date Range

1/1/2000 - 1/1/2021

Summary

The 'Liquid Assets to Deposits and Short Term Funding for Bangladesh' trend measures the ratio of liquid assets to deposits and short-term funding for banks in Bangladesh. This indicator provides insights into the liquidity and stability of the Bangladeshi 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

This economic indicator tracks the level of liquid assets, such as cash and government securities, held by banks in Bangladesh relative to their total deposits and short-term funding. It serves as a key measure of banking sector liquidity and can signal potential vulnerabilities in the financial system.

Methodology

The data is collected and calculated by the World Bank based on reports from the central bank and financial institutions in Bangladesh.

Historical Context

Policymakers and analysts monitor this trend to assess the resilience of the Bangladeshi banking sector and its ability to withstand liquidity shocks.

Key Facts

  • Bangladesh's liquid assets to deposits and short-term funding ratio was 31.8% in 2020.
  • The ratio has declined from a high of 38.5% in 2015, indicating a potential decrease in banking sector liquidity.
  • Maintaining an adequate liquidity buffer is crucial for the stability of the Bangladeshi financial system.

FAQs

Q: What does this economic trend measure?

A: The 'Liquid Assets to Deposits and Short Term Funding for Bangladesh' trend measures the ratio of liquid assets, such as cash and government securities, held by banks in Bangladesh to their total deposits and short-term funding.

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

A: This indicator provides insights into the liquidity and stability of the Bangladeshi banking system, which is crucial for assessing the resilience of the financial sector and its ability to withstand potential shocks.

Q: How is this data collected or calculated?

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

Q: How is this trend used in economic policy?

A: Policymakers and analysts monitor this trend to assess the liquidity and stability of the Bangladeshi banking sector, which informs decisions on financial regulation, monetary policy, and crisis management.

Q: Are there update delays or limitations?

A: The data may be subject to reporting delays and revisions by the collecting institutions, and the coverage may be limited to the formal banking sector in Bangladesh.

Related Trends

Citation

U.S. Federal Reserve, Liquid Assets to Deposits and Short Term Funding for Bangladesh (DDSI06BDA156NWDB), retrieved from FRED.