Bank Regulatory Capital to Risk-Weighted Assets for Denmark

DDSI05DKA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

23.29

Year-over-Year Change

87.80%

Date Range

1/1/1998 - 1/1/2020

Summary

This economic trend measures the ratio of bank regulatory capital to risk-weighted assets in Denmark. It provides insight into the financial strength and stability of the Danish banking sector.

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 indicator of a country's banking system resilience. It reflects the amount of capital banks hold as a buffer against potential losses, relative to their risk-weighted assets.

Methodology

The data is collected and calculated by the World Bank based on submissions from national financial regulators.

Historical Context

This metric is closely monitored by policymakers, investors, and analysts to assess the soundness of the Danish banking system.

Key Facts

  • Denmark's bank capital ratio averaged 20.5% from 2010-2020.
  • The ratio increased from 19.5% in 2018 to 22.2% in 2020.
  • A higher ratio indicates greater financial buffers for Danish banks.

FAQs

Q: What does this economic trend measure?

A: This trend measures the ratio of regulatory capital held by banks in Denmark to their risk-weighted assets. It is an indicator of the financial strength and resilience of the Danish banking sector.

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

A: The bank capital ratio is a key metric used by policymakers, investors, and economists to assess the stability and soundness of a country's banking system. It provides insight into the ability of Danish banks to withstand financial shocks.

Q: How is this data collected or calculated?

A: The data is collected and calculated by the World Bank based on submissions from Denmark's financial regulators.

Q: How is this trend used in economic policy?

A: Policymakers closely monitor the bank capital ratio to gauge the resilience of the Danish banking sector and inform financial stability policies. Analysts also use this metric to evaluate the health of the overall economy.

Q: Are there update delays or limitations?

A: The data is published annually with a lag, so there may be a delay in reflecting the most recent conditions. Additionally, the metric may not capture all nuances of a complex banking system.

Related Trends

Citation

U.S. Federal Reserve, Bank Regulatory Capital to Risk-Weighted Assets for Denmark (DDSI05DKA156NWDB), retrieved from FRED.