Liquid assets to deposits and short term funding (%)

This financial metric, derived from Bankscope, evaluates the liquidity position of banks by comparing liquid assets against their deposits and short-term funding sources. The calculation begins with the aggregation of raw data at the country level, ensuring a comprehensive overview that reflects regional banking stability. By utilizing detailed bank-specific, unconsolidated data, this indicator offers valuable insights into a bank's ability to meet short-term obligations, highlighting financial resilience during economic fluctuations. Analyzing trends over time can reveal shifts in liquidity management practices and potential vulnerabilities within the financial sector, making it a critical tool for investors and regulators alike in assessing systemic risk and overall banking health. Source: