TAIFRI Introduction
Taiwan Financial Risk Index (TAIFRI) is the first index which provides a comprehensive view of financial risk measurement in Taiwan. It consists of seventeen indicators of valuation pressures, non-financial sector stability, financial sector stability, spillover and contagion.
Except for traditional financial soundness indicators, the index captures international contagion and real estate market risk which are visible and emerging issues in Taiwan. In the practical test, the index captures risk condition in the Taiwan financial system throughout the entire business cycles. It proves that the TAIFRI performs well in capturing financial risk in Taiwan.
TAIFRI not only follows the trend of international banking supervision but also considers local situation to collect data on a broad range of indicators. We wish TAIFRI may provide useful information for assessing financial risk in Taiwan. We will make continuous effort to revise the index for reflecting emerging risk in future.