Liquid Assets to Deposits and Short Term Funding for Hong Kong SAR, China

DDSI06HKA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

50.88

Year-over-Year Change

66.25%

Date Range

1/1/2000 - 1/1/2021

Summary

This economic trend measures the ratio of liquid assets to deposits and short-term funding for the Hong Kong Special Administrative Region (SAR) of China. It provides insights into the liquidity and stability of the Hong Kong financial 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 Liquid Assets to Deposits and Short Term Funding ratio represents the proportion of a bank's total deposits and short-term liabilities that are held in the form of highly liquid assets. This metric is used by economists and policymakers to assess the resilience and liquidity of the Hong Kong banking sector.

Methodology

The data is collected and calculated by the World Bank based on reports from the Hong Kong Monetary Authority.

Historical Context

This trend is closely monitored by regulators and market analysts to gauge the overall health and risk profile of the Hong Kong financial system.

Key Facts

  • Hong Kong has one of the most developed and liquid banking sectors in the world.
  • The Liquid Assets to Deposits ratio in Hong Kong has remained above 30% since 2010.
  • Maintaining high liquidity levels is crucial for Hong Kong's role as a global financial center.

FAQs

Q: What does this economic trend measure?

A: This trend measures the ratio of liquid assets to deposits and short-term funding for the Hong Kong banking system. It provides an indicator of the sector's liquidity and ability to withstand financial shocks.

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

A: This metric is closely watched by economists, regulators, and market participants to assess the stability and resilience of Hong Kong's financial system, which is a critical component of the global economy.

Q: How is this data collected or calculated?

A: The data is collected and calculated by the World Bank based on reports from the Hong Kong Monetary Authority, the city's central banking institution.

Q: How is this trend used in economic policy?

A: Policymakers and regulators in Hong Kong and abroad use this metric to monitor the health of the Hong Kong banking sector and inform decisions related to financial stability, liquidity requirements, and macroprudential policies.

Q: Are there update delays or limitations?

A: The Liquid Assets to Deposits and Short Term Funding ratio for Hong Kong is reported annually with a lag of approximately one year, so the most recent data may not reflect the current state of the banking system.

Related Trends

Citation

U.S. Federal Reserve, Liquid Assets to Deposits and Short Term Funding for Hong Kong SAR, China (DDSI06HKA156NWDB), retrieved from FRED.