This series is calculated by using the core measure of liquid assets as the numerator and total assets as the denominator. The ratio can also be calculated using the broad measure of liquid assets as the numerator. This series is a liquid asset ratio, which provides an indication of the liquidity available to meet expected and unexpected demands for cash. The level of liquidity indicates the ability of the deposit-taking sector to withstand shocks to their balance sheet.
Copyright, 2014, International Monetary Fund. Reprinted with permission.
Source: International Monetary Fund
Release: Financial Soundness Indicators
International Monetary Fund, Liquid Assets to Total Assets (Liquid Asset Ratio) for South Africa© [LQASRTZAM163N], retrieved from FRED, Federal Reserve Bank of St. Louis https://research.stlouisfed.org/fred2/series/LQASRTZAM163N/, August 3, 2015.