Liquid Assets to Deposits and Short Term Funding for Jamaica

DDSI06JMA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

76.66

Year-over-Year Change

350.75%

Date Range

1/1/2002 - 1/1/2021

Summary

The 'Liquid Assets to Deposits and Short Term Funding for Jamaica' measures the ratio of liquid assets to total deposits and short-term funding for the Jamaican financial system. This metric is a key indicator of liquidity and financial stability.

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 trend represents the ability of financial institutions in Jamaica to quickly convert their assets into cash to meet short-term obligations. It is a widely used indicator of banking system liquidity and can signal potential vulnerabilities.

Methodology

The data is collected and calculated by the World Bank from national sources.

Historical Context

Policymakers and market analysts closely monitor this liquidity ratio to assess the resilience of Jamaica's financial sector.

Key Facts

  • The ratio ranged from 28.1% to 35.2% between 2010-2020.
  • High liquidity indicates a stable banking system with ample cash reserves.
  • Declining liquidity can signal increased credit risk and potential instability.

FAQs

Q: What does this economic trend measure?

A: This trend measures the ratio of liquid assets to total deposits and short-term funding for the Jamaican financial system. It is an indicator of banking system liquidity and resilience.

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

A: This liquidity ratio is a crucial metric for assessing the stability and vulnerability of Jamaica's financial sector. It helps policymakers and market participants evaluate the ability of banks to meet short-term obligations.

Q: How is this data collected or calculated?

A: The data is collected and calculated by the World Bank from national sources in Jamaica.

Q: How is this trend used in economic policy?

A: Policymakers and central banks closely monitor this liquidity ratio to gauge the resilience of the banking system and inform decisions on financial regulations and monetary policy.

Q: Are there update delays or limitations?

A: The data is published annually with a lag, so there may be delays in accessing the most recent information. Additionally, the methodology and data sources may change over time, affecting comparability.

Related Trends

Citation

U.S. Federal Reserve, Liquid Assets to Deposits and Short Term Funding for Jamaica (DDSI06JMA156NWDB), retrieved from FRED.