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Financial Efficiency
Bank lending-
deposit spread
Difference between lending rate and deposit rate. Lending rate is the rate
charged by banks on loans to the private sector and deposit interest rate is the
rate offered by commercial banks on three-month deposits.
Bank return on
assets (%, after
tax)
Commercial banks’ after-tax net income to yearly averaged equity.
Bank return on
equity (%, after
tax)
Commercial banks’ after-tax net income to yearly averaged equity.
Stock market
turnover ratio (%)
Total value of shares traded during the period divided by the average market
capitalization for the period.
Financial Stability
Bank non-
performing loans
to gross loans (%)
Ratio of defaulting loans (payments of interest and principal past due by 90
days or more) to total gross loans (total value of loan portfolio). The loan
amount recorded as nonperforming includes the gross value of the loan as
recorded on the balance sheet, not just the amount that is overdue.
Bank capital to
total assets (%)
Ratio of bank capital and reserves to total assets. Capital and reserves include
funds contributed by owners, retained earnings, general and special reserves,
provisions, and valuation adjustments. Capital includes tier 1 capital (paid-up
shares and common stock), which is a common feature in all countries' banking
systems, and total regulatory capital, which includes several specified types of
subordinated debt instruments that need not be repaid if the funds are
required to maintain minimum capital levels (these comprise tier 2 and tier 3
capital). Total assets include all nonfinancial and financial assets.
Bank credit to
bank deposits (%)
The financial resources provided to the private sector by domestic money
banks as a share of total deposits. Domestic money banks comprise commercial
banks and other financial institutions that accept transferable deposits, such as
demand deposits. Total deposits include demand, time and saving deposits in
deposit money banks.
Bank regulatory
capital to risk-
weighted assets
(%)
The capital adequacy of deposit takers. It is a ratio of total regulatory capital to
its assets held, weighted according to risk of those assets.