Bank Regulatory Capital to Risk-Weighted Assets for Colombia
DDSI05COA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
19.94
Year-over-Year Change
29.47%
Date Range
1/1/1998 - 1/1/2020
Summary
This economic trend measures the ratio of bank regulatory capital to risk-weighted assets in Colombia. It is an important indicator of the financial health and stability of the Colombian banking 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 bank regulatory capital to risk-weighted assets ratio is a key metric used to assess the capital adequacy of banks. It represents the amount of a bank's capital compared to its risk-weighted assets, providing insight into the institution's ability to absorb potential losses.
Methodology
The data is collected and calculated by the World Bank based on regulatory submissions from Colombian financial institutions.
Historical Context
This metric is closely monitored by policymakers, regulators, and market analysts to gauge the resilience of the Colombian financial sector.
Key Facts
- The minimum regulatory capital ratio for Colombian banks is 9%.
- Colombia's bank regulatory capital to risk-weighted assets ratio averaged 16.2% from 2010 to 2020.
- This metric serves as an early warning signal for potential banking system vulnerabilities.
FAQs
Q: What does this economic trend measure?
A: This trend measures the ratio of bank regulatory capital to risk-weighted assets in Colombia. It provides an indication of the capital adequacy and financial strength of the Colombian banking system.
Q: Why is this trend relevant for users or analysts?
A: This metric is closely watched by policymakers, regulators, and market participants as it reflects the resilience of the Colombian financial sector and its ability to withstand potential shocks or losses.
Q: How is this data collected or calculated?
A: The data is collected and calculated by the World Bank based on regulatory submissions from Colombian financial institutions.
Q: How is this trend used in economic policy?
A: Policymakers and regulators use this metric to monitor the health of the Colombian banking system and inform decisions regarding financial stability, capital requirements, and prudential policies.
Q: Are there update delays or limitations?
A: The data is published annually with a potential delay of up to two years. Users should be aware of this limitation when interpreting the most recent values.
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Citation
U.S. Federal Reserve, Bank Regulatory Capital to Risk-Weighted Assets for Colombia (DDSI05COA156NWDB), retrieved from FRED.