Banking sector indicators examine the risks emanating from the banking sector, given the typical importance of this sector for financial stability. These indicators examine the movements in financial soundness indicators of the banking system to assess how risks posed by the banking system are evolving. Another set of indicators examine conditions in financial markets.
Five years on, there is clearly no widely accepted single indicator or model capturing systemic risks and instabilities comprehensively. Most models/techniques that have been developed cover one or a few specific aspects of systemic risk. Each measure is an approximation and each has its own strengths and weaknesses.