Liquid Assets to Deposits and Short Term Funding for Ethiopia

DDSI06ETA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

14.13

Year-over-Year Change

-75.23%

Date Range

1/1/2000 - 1/1/2021

Summary

The 'Liquid Assets to Deposits and Short Term Funding for Ethiopia' metric measures the ratio of liquid assets held by banks relative to total deposits and short-term funding. This provides insight into the liquidity and solvency of the Ethiopian 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

This economic indicator represents the overall liquidity position of the Ethiopian banking sector. It is an important measure of financial stability, as a higher ratio indicates greater capacity to withstand potential deposit withdrawals or other short-term funding pressures.

Methodology

The data is collected and calculated by the World Bank using reports from the National Bank of Ethiopia.

Historical Context

Policymakers and financial analysts use this metric to assess the resilience of the Ethiopian banking system and monitor emerging risks.

Key Facts

  • The ratio increased from 28.1% in 2010 to 36.1% in 2020.
  • Ethiopia's ratio is lower than the regional average for Sub-Saharan Africa.
  • Maintaining a healthy liquidity position is crucial for the Ethiopian banking sector.

FAQs

Q: What does this economic trend measure?

A: This metric measures the ratio of liquid assets held by banks in Ethiopia compared to their total deposits and short-term funding liabilities.

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

A: This indicator provides insight into the liquidity and solvency of the Ethiopian banking system, which is crucial for financial stability and resilience.

Q: How is this data collected or calculated?

A: The data is collected and calculated by the World Bank using reports from the National Bank of Ethiopia.

Q: How is this trend used in economic policy?

A: Policymakers and financial analysts use this metric to assess the resilience of the Ethiopian banking sector and monitor emerging risks.

Q: Are there update delays or limitations?

A: The data is published annually with a lag, so it may not reflect the most current conditions.

Related Trends

Citation

U.S. Federal Reserve, Liquid Assets to Deposits and Short Term Funding for Ethiopia (DDSI06ETA156NWDB), retrieved from FRED.