Abstract

8.1 This chapter covers market-based FSIs required for assessing the health of the financial system. The chapter is divided into two sections: interest rate and securities market indicators. The interest rate FSIs provide information on the interest rates charged by and to deposit takers, thus providing an indication of profitability and competitiveness in the banking sector, along with information on the spread in interbank rates that can provide early indications of credit risk concerns among deposit takers. The securities market FSIs provide information on the liquidity of the securities markets in which deposit takers are active and on which they can partially rely to help manage their liquidity.

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