Liquid Assets to Deposits and Short Term Funding for Lesotho

DDSI06LSA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

50.48

Year-over-Year Change

-30.49%

Date Range

1/1/2000 - 1/1/2021

Summary

The 'Liquid Assets to Deposits and Short Term Funding for Lesotho' trend measures the ratio of a country's liquid assets to its total deposits and short-term funding. This metric provides insight into the liquidity and stability of a nation's financial 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 proportion of a country's total deposits and short-term funding that is held in liquid assets. It is a key measure of financial sector resilience, as a higher ratio indicates greater ability to withstand liquidity shocks.

Methodology

The data is calculated by the World Bank using national financial sector statistics.

Historical Context

Policymakers and market analysts closely monitor this trend to assess the overall health and vulnerability of a country's banking system.

Key Facts

  • Lesotho's liquid assets to deposits ratio was 23.4% in 2020.
  • The ratio has declined from a high of 30.5% in 2015.
  • Maintaining an adequate liquidity cushion is crucial for Lesotho's financial system.

FAQs

Q: What does this economic trend measure?

A: This trend measures the ratio of a country's liquid assets to its total deposits and short-term funding, providing insight into the liquidity and stability of the financial system.

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

A: This metric is closely watched by policymakers and market analysts to assess the overall health and vulnerability of a country's banking system.

Q: How is this data collected or calculated?

A: The data is calculated by the World Bank using national financial sector statistics.

Q: How is this trend used in economic policy?

A: Policymakers use this trend to monitor the liquidity and resilience of the financial sector, which is crucial for maintaining financial stability.

Q: Are there update delays or limitations?

A: The data may be subject to delays in reporting and may not capture all aspects of a country's financial system liquidity.

Related Trends

Citation

U.S. Federal Reserve, Liquid Assets to Deposits and Short Term Funding for Lesotho (DDSI06LSA156NWDB), retrieved from FRED.