Tonga | Bank capital to assets ratio (%)
Bank capital to assets is the 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. Development relevance: The size and mobility of international capital flows make it increasingly important to monitor the strength of financial systems. Robust financial systems can increase economic activity and welfare, but instability can disrupt financial activity and impose widespread costs on the economy. The ratio of bank capital to assets, a measure of bank solvency and resiliency, shows the extent to which banks can deal with unexpected losses. Capital includes tier 1 capital (paid-up shares and common stock), a common feature in all countries' banking systems, and total regulatory capital, which includes several types of subordinated debt instruments that need not be repaid if the funds are required to maintain minimum capital levels (tier 2 and tier 3 capital). Total assets include all nonfinancial and financial assets. Data are from internally consistent financial statements. Limitations and exceptions: Reporting countries compile the data using different methodologies, which may also vary for different points in time for the same country. Users are advised to consult the accompanying metadata on the IMF FSI website (data.imf.org) to conduct more meaningful cross-country comparisons or to assess the evolution of the indicator for any of the countries. Statistical concept and methodology: The ratio of capital to total assets, without the latter being risk weighted. Capital is measured as total capital and reserves as reported in the sectoral balance sheet; for cross-border consolidated data, Tier 1 capital can also be used. It indicates the extent to which assets are funded by other than own funds and is a measure of capital adequacy of the deposit-taking sector. It complements the capital adequacy ratios compiled based on the methodology agreed to by the Basle Committee on Banking Supervision. Also, it measures financial leverage and is sometimes called the leverage ratio. Data are submitted by national authorities to the IMF following the Financial Soundness Indicators (FSI) Compilation Guide. For country specific metadata, including reporting period, please refer to the GFSR FSI Tables and the Data and Metadata Tables available through FSIs website: http://data.imf.org/.
Publisher
The World Bank
Origin
Kingdom of Tonga
Records
63
Source
Tonga | Bank capital to assets ratio (%)
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16.55605784 2012
17.78129769 2013
20.35634658 2014
19.64675626 2015
16.82060057 2016
15.33251735 2017
15.96799861 2018
17.66173025 2019
17.20630277 2020
15.17211925 2021
2022
Tonga | Bank capital to assets ratio (%)
Bank capital to assets is the 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. Development relevance: The size and mobility of international capital flows make it increasingly important to monitor the strength of financial systems. Robust financial systems can increase economic activity and welfare, but instability can disrupt financial activity and impose widespread costs on the economy. The ratio of bank capital to assets, a measure of bank solvency and resiliency, shows the extent to which banks can deal with unexpected losses. Capital includes tier 1 capital (paid-up shares and common stock), a common feature in all countries' banking systems, and total regulatory capital, which includes several types of subordinated debt instruments that need not be repaid if the funds are required to maintain minimum capital levels (tier 2 and tier 3 capital). Total assets include all nonfinancial and financial assets. Data are from internally consistent financial statements. Limitations and exceptions: Reporting countries compile the data using different methodologies, which may also vary for different points in time for the same country. Users are advised to consult the accompanying metadata on the IMF FSI website (data.imf.org) to conduct more meaningful cross-country comparisons or to assess the evolution of the indicator for any of the countries. Statistical concept and methodology: The ratio of capital to total assets, without the latter being risk weighted. Capital is measured as total capital and reserves as reported in the sectoral balance sheet; for cross-border consolidated data, Tier 1 capital can also be used. It indicates the extent to which assets are funded by other than own funds and is a measure of capital adequacy of the deposit-taking sector. It complements the capital adequacy ratios compiled based on the methodology agreed to by the Basle Committee on Banking Supervision. Also, it measures financial leverage and is sometimes called the leverage ratio. Data are submitted by national authorities to the IMF following the Financial Soundness Indicators (FSI) Compilation Guide. For country specific metadata, including reporting period, please refer to the GFSR FSI Tables and the Data and Metadata Tables available through FSIs website: http://data.imf.org/.
Publisher
The World Bank
Origin
Kingdom of Tonga
Records
63
Source