This table provides metadata for the actual indicator available from Vanuatu statistics closest to the corresponding global SDG indicator. Please note that even when the global SDG indicator is fully available from Vanuatuan statistics, this table should be consulted for information on national methodology and other Vanuatu-specific metadata information.
| Proxy |
No |
|---|---|
| Definition |
The “Deposit Ratios” indicator measures the proportion of total deposits held by financial institutions, such as banks, relative to their total liabilities or assets. This ratio provides insight into the stability, liquidity, and risk management practices of financial institutions by indicating the extent to which their operations are funded by deposits. |
| Concept |
This indicator tracks the relationship between deposits—funds placed in banks or financial institutions by individuals, businesses, and other entities—and the broader financial operations of these institutions. The deposit ratio is typically expressed as a percentage and can be calculated in various forms, such as the loan-to-deposit ratio (which compares loans to deposits) or the deposit-to-liability ratio (which compares deposits to total liabilities). The ratio is a key measure of a financial institution’s liquidity and its ability to meet withdrawal demands from depositors. |
| Disaggregation |
Bank |
| Rationale |
Monitoring deposit ratios is crucial for assessing the financial health and stability of banking institutions. A high deposit ratio suggests that a significant portion of a bank’s funding comes from deposits, which is generally seen as a stable and reliable source of funds. Conversely, a low deposit ratio might indicate a reliance on more volatile or expensive sources of funding, potentially increasing the institution’s risk profile. |
| Method of Computation |
To compute “Deposit Ratios,” first collect data on the total amount of deposits held by financial institutions, as well as their total liabilities or assets, depending on the specific ratio being calculated. For the loan-to-deposit ratio, divide total loans by total deposits and multiply by 100 to express it as a percentage. For the deposit-to-liability or deposit-to-asset ratios, divide total deposits by total liabilities or assets, respectively, and multiply by 100. Formula: Loan to Deposit Ratio= (Total Loans/Total Deposits)100 Deposit to Liability Ratio= (Total Deposits/Total Liabilities)100 Deposit to Asset Ratio= (Total Deposits/Total Assets)*100 |
| Sustainable Development Goal Indicator Alignment |
8.10.1 & 8.10.2 |
| Unit of Measurement |
Percentage |
| Frequency of Collection |
Annually |