Bank liquid reserves to bank assets ratio (%)

This indicator reflects the proportion of a bank's liquid reserves, primarily consisting of domestic currency and deposits held with central monetary authorities, relative to its overall assets, which include claims on various sectors such as governments, public enterprises, the private sector, and other banks. A higher ratio suggests increased liquidity, indicating a bank's ability to quickly meet its short-term obligations and respond to financial shocks, thereby enhancing stability in the financial system. Conversely, a lower ratio may signal potential liquidity risks, raising concerns about a bank's resilience in economic downturns. Understanding this metric is crucial for assessing a bank's financial health and its capacity to withstand fluctuations in market conditions. Source: