Financial Soundness Indicators: Analytical Aspects and Country Practices

April 8, 2002

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Format: Chicago

Financial Soundness Indicators: Analytical Aspects and Country Practices, (USA: International Monetary Fund, 2002) accessed November 22, 2024

Summary

The financial turmoil of the late 1990s prompted a broad search for tools and techniques for detecting and preventing financial crises, and more recent episodes of instability have high lighted the importance of continuous monitoring of financial systems as a tool for preventing crises. This paper looks at the development of measures of financial sector soundness and of methods to analyze them. The authors propose two sets of financial soundness indicators that are considered useful for periodic monitoring, and for compilation and dissemination efforts by national authorities. They highlight the substantial advance made in recent years in measuring and analyzing financial soundness indicators, and specify areas where more work is needed.

Subject: Banking, Capital adequacy requirements, Credit risk, Financial institutions, Financial regulation and supervision, Financial sector policy and analysis, Financial soundness indicators, Loans, Prices, Real estate prices, Stress testing

Keywords: Africa, Asset, Asset quality, Average equity, Capital adequacy requirements, Credit risk, Europe, Financial soundness indicators, Foreign currency, Global, Loans, Market, Market liquidity indicator, Middle East, On-balance-sheet assets, OP, Ratio, Real estate prices, Stress testing, Western Hemisphere

Publication Details

Pages:

111
Volume:

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DOI:

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Issue:

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Series:

Occasional Paper No. 2002/003
Stock No:

S212EA0000000
ISBN:

9781589060869
ISSN:

0251-6365

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