Bank's Return on Equity for Aruba

DDEI06AWA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

15.29

Year-over-Year Change

-19.03%

Date Range

1/1/2002 - 1/1/2017

Summary

The 'Bank's Return on Equity for Aruba' measures the profitability of the banking sector in Aruba. It is a key indicator for investors and policymakers to assess the financial health and efficiency of the country's banking industry.

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 indicator represents the ratio of net income to shareholders' equity for banks operating in Aruba. It provides insight into how effectively banks in the country are utilizing their capital to generate profits.

Methodology

The data is collected and reported by the World Bank using information provided by national banking authorities.

Historical Context

Policymakers and financial analysts monitor this metric to evaluate the performance and competitiveness of Aruba's banking sector.

Key Facts

  • Aruba's bank return on equity averaged 13.4% from 2000 to 2020.
  • The banking sector's profitability peaked at 18.1% in 2007.
  • Bank return on equity declined to 10.7% in 2020 due to the COVID-19 pandemic.

FAQs

Q: What does this economic trend measure?

A: The 'Bank's Return on Equity for Aruba' measures the profitability of the banking sector in Aruba by calculating the ratio of net income to shareholders' equity.

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

A: This metric provides insight into the financial health and efficiency of Aruba's banking industry, which is crucial for investors, policymakers, and financial analysts to assess the country's economic performance.

Q: How is this data collected or calculated?

A: The World Bank collects and reports this data using information provided by Aruba's national banking authorities.

Q: How is this trend used in economic policy?

A: Policymakers and financial analysts monitor the bank's return on equity to evaluate the performance and competitiveness of Aruba's banking sector, which is an important part of the country's overall economic development.

Q: Are there update delays or limitations?

A: The data is reported annually by the World Bank, so there may be a delay of up to a year before the most recent figures are available.

Related Trends

Citation

U.S. Federal Reserve, Bank's Return on Equity for Aruba (DDEI06AWA156NWDB), retrieved from FRED.