Bank Regulatory Capital to Risk-Weighted Assets for Brazil

DDSI05BRA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

16.84

Year-over-Year Change

-4.86%

Date Range

1/1/1998 - 1/1/2020

Summary

The Bank Regulatory Capital to Risk-Weighted Assets for Brazil measures the capital adequacy of the Brazilian banking system. It is a key indicator used by economists and policymakers to assess financial stability and resilience.

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 ratio of a bank's regulatory capital to its risk-weighted assets. It provides insight into the capital buffer that banks maintain to absorb potential losses and shocks. Higher ratios indicate stronger capitalization and a more resilient financial system.

Methodology

The data is calculated and reported by the World Bank based on regulatory filings from Brazilian financial institutions.

Historical Context

Regulators and analysts monitor this trend to evaluate the health of the Brazilian banking sector and its ability to withstand economic disruptions.

Key Facts

  • Brazil's bank regulatory capital ratio averaged 17.6% from 2010-2020.
  • The ratio reached a high of 18.3% in 2017 before declining slightly.
  • Adequate bank capitalization is crucial for financial system resilience.

FAQs

Q: What does this economic trend measure?

A: This metric represents the ratio of a bank's regulatory capital to its risk-weighted assets, providing insight into the capital buffer that banks maintain to absorb potential losses.

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

A: Regulators and analysts monitor this trend to evaluate the health and resilience of the Brazilian banking sector, which is crucial for overall financial stability.

Q: How is this data collected or calculated?

A: The data is calculated and reported by the World Bank based on regulatory filings from Brazilian financial institutions.

Q: How is this trend used in economic policy?

A: Policymakers use this metric to assess the capital adequacy of the Brazilian banking system and inform decisions on financial regulations and macroprudential policies.

Q: Are there update delays or limitations?

A: The data is subject to reporting lags and may not capture the most recent changes in the Brazilian banking sector.

Related Trends

Citation

U.S. Federal Reserve, Bank Regulatory Capital to Risk-Weighted Assets for Brazil (DDSI05BRA156NWDB), retrieved from FRED.