| Description (HTML) |
Assess financial soundness of individual institutions through evaluating firms' assets and liabilities, internal management, and market health. Detailed
data about assets and liabilities are necessary to anticipate
how shocks may originate within financial companies.
These measures have weaknesses: many are backward
looking and not timely, and, since they typically focus
on individual institutions, they do not take into account
spillovers. There are also large gaps in data about some
nonbank financial companies’ activities. |