Liquid Assets to Deposits and Short Term Funding for United States

DDSI06USA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

23.71

Year-over-Year Change

25.29%

Date Range

1/1/2000 - 1/1/2021

Summary

The 'Liquid Assets to Deposits and Short Term Funding for United States' trend measures the ratio of liquid assets to total deposits and short-term funding, providing insights into the liquidity of the U.S. 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

This metric represents the proportion of a country's total bank deposits and short-term liabilities that are held in the form of highly liquid assets. It is a key indicator of the banking sector's ability to withstand potential liquidity shocks.

Methodology

The data is calculated by the World Bank using information reported by national central banks and financial authorities.

Historical Context

Policymakers and financial analysts closely monitor this ratio to assess the overall stability and resilience of the U.S. banking system.

Key Facts

  • The U.S. liquid assets to deposits ratio averaged 0.37 from 1980 to 2020.
  • Liquid assets include cash, central bank reserves, and other highly marketable securities.
  • Higher ratios indicate greater liquidity and financial system resilience.

FAQs

Q: What does this economic trend measure?

A: This trend measures the ratio of liquid assets to total deposits and short-term funding in the U.S. banking system, providing an indicator of the sector's liquidity.

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

A: The liquid assets to deposits ratio is a crucial metric for assessing the stability and resilience of the U.S. financial system, as it reflects the banking sector's ability to withstand potential liquidity shocks.

Q: How is this data collected or calculated?

A: The data is calculated by the World Bank using information reported by national central banks and financial authorities.

Q: How is this trend used in economic policy?

A: Policymakers and financial analysts closely monitor this ratio to evaluate the overall stability and resilience of the U.S. banking system, which informs regulatory decisions and macroeconomic policies.

Q: Are there update delays or limitations?

A: The data is updated annually, with a potential delay of several months between the reference period and the publicly available information.

Related Trends

Citation

U.S. Federal Reserve, Liquid Assets to Deposits and Short Term Funding for United States (DDSI06USA156NWDB), retrieved from FRED.