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Agenda 2030 - List Of Indicators
Financial Soundness Indicators
Indicator detail
10.5.1 Financial Soundness Indicators
Metadata
| Relevance/rationale of the indicator (resp. why the indicator was chosen to measure the target and how it is suitable for these purposes) | Regulatory Tier 1 capital to assets: It is a measure of leverage indicating the extent to which assets are funded by other than own funds. Regulatory Tier 1 capital to risk-weighted assets: It measures the capital adequacy of deposit takers based on the core capital concept of the Basel Committee on Banking Supervision (BCBS). Capital adequacy and availability ultimately determine the degree of robustness of financial institutions to withstand shocks to their balance sheets. Nonperforming loans net of provisions to capital: This FSI is a capital adequacy ratio and is an important indicator of the capacity of bank capital to withstand losses from NPLs that are not covered by specific provisions for NPLs. Nonperforming loans to total gross loans: This FSI is often used as a proxy for asset quality and is intended to identify problems with asset quality in the loan portfolio. Return on assets: It is an indicator of bank profitability and is intended to measure deposit takers’ efficiency in using their assets. Liquid assets to short-term liabilities: It is a liquidity ratio and is intended to capture the liquidity mismatch of assets and liabilities and provides an indication of the extent to which deposit takers can meet the short-term withdrawal of funds without facing liquidity problems. Net open position in foreign exchange to capital: This FSI is an indicator of sensitivity to market risk, which is intended to gauge deposit takers’ exposure to exchange rate risk compared with capital. It measures the mismatch of foreign currency asset and liability positions to assess the vulnerability to exchange rate movements. |
| Target value of the indicator and its evaluation | |
| Definition | Seven FSIs are included as SDG indicators for 10.5.1 and expressed as percent: 1 - Regulatory Tier 1 capital to assets 2 - Regulatory Tier 1 capital to risk-weighted assets 3 - Nonperforming loans net of provisions to capital 4 - Nonperforming loans to total gross loans 5 - Return on assets 6 - Liquid assets to short-term liabilities 7 - Net open position in foreign exchange to capital |
| Measuring unit | % Data in the sectoral financial statements and other memorandum series used to calculate FSIs are in national currency. |
| Indicator disaggregation | |
| Reference period (resp. the period to which the indicator relates) | Year, resp. as of end of the 4Q in the year |
| Related geographical area | CZ (NUTS 0) |
| Comment | Indicator Net open position in foreign exchange to capital has not been monitored since 2019 1Q (due to the switch to the FINREP single reporting framework, which does not contain data on foreign currency-denominated loans). The Czech Republic will use the annual transitional period of 2022 to implement the "2019 FSIs Guide". After the implementation of the new rules/indicators, at least two indicators will be newly mapped from 4Q 2022 (inclusive), including recalculation of the time series. |
| Update periodicity | Annually (available quarterly) |
| Time coverage since | 2008 |
| Time coverage until | 2023 |
| Time series available at the data provider since | 2008 |
| Data publication date (resp. the date when the data provider publishes (regularly) data; it is given in the format T + the number of days, months or years when T is the end of the reference period) | T+3m |
| Contact point - data provider - e-mail | jiri.sojka@cnb.cz |
| Contact point - data provider - name | Jiří Sojka |
| Data source | Czech National Bank |
| Data origin | Database ARAD of the CNB |
| Links to detailed metadata or methodology | http://www.cnb.cz/arad/#/en/display_link/set_1120__ https://www.cnb.cz/docs/ARADY/MET_LIST/icd_bs23_en.pdf |
| Links to international comparison |