Financial Stability Review – March 2005 Box E: Financial Soundness Indicators

No Indicator
Core Set
Capital adequacy 1 Regulatory capital to risk-weighted assets
2 Regulatory Tier 1 capital to risk-weighted assets
3 Non-performing loans net of provisions to capital
Asset quality 4 Non-performing loans to total gross loans
5 Sectoral distribution of loans to total loans
Earnings and profitability 6 Return on assets
7 Return on equity
8 Interest margin to gross income
9 Non-interest expenses to gross income
Liquidity 10 Liquid assets to total assets (liquid asset ratio)
11 Liquid assets to short-term liabilities
Sensitivity to market risk 12 Net open position in foreign exchange to capital
Encouraged Set
Deposit-takers 13 Capital to assets
14 Large exposures to capital
15 Geographical distribution of loans to total loans
16 Gross asset position in financial derivatives to capital
17 Gross liability position in financial derivatives to capital
18 Trading income to total income
19 Personnel expenses to non-interest expenses
20 Spread between reference lending and deposit rates
21 Spread between highest and lowest interbank rate
22 Customer deposits to total (non-interbank) loans
23 Foreign-currency-denominated loans to total loans
24 Foreign-currency-denominated liabilities to total liabilities
25 Net open position in equities to capital
Other financial
26 Assets to total financial system assets
27 Assets to GDP
corporate sector
28 Total debt to equity
29 Return on equity
30 Earnings to interest and principal expenses
31 Net foreign exchange exposure to equity
32 Number of applications for protection from creditors
Households 33 Household debt to GDP
34 Household debt service and principal payments to income
Market liquidity 35 Average bid-ask spread in the securities market
36 Average daily turnover ratio in the securities market
Real estate markets 37 Real estate prices
38 Residential real estate loans to total loans
39 Commercial real estate loans to total loans