Bank's Overhead Costs to Total Assets for United States
DDEI04USA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
2.41
Year-over-Year Change
-15.79%
Date Range
1/1/2000 - 1/1/2021
Summary
This economic trend measures the ratio of a bank's overhead costs to its total assets, providing insight into a bank's operational efficiency and profitability.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
The Bank's Overhead Costs to Total Assets ratio is an important metric used to evaluate a bank's operational performance. It indicates the proportion of a bank's total assets that are consumed by its overhead expenses, such as staff salaries, rent, and other administrative costs.
Methodology
The data is collected and calculated by the World Bank using financial statements and regulatory reporting from commercial banks.
Historical Context
This trend is closely monitored by policymakers, regulators, and analysts to assess the health and competitiveness of the banking sector.
Key Facts
- Banks with lower overhead costs tend to be more profitable.
- The ratio can vary significantly across different banking markets and business models.
- Tracking this metric helps identify areas for potential cost-cutting or operational improvements.
FAQs
Q: What does this economic trend measure?
A: This trend measures the ratio of a bank's overhead costs, such as staff salaries and administrative expenses, to its total assets. It provides insight into a bank's operational efficiency and profitability.
Q: Why is this trend relevant for users or analysts?
A: The Bank's Overhead Costs to Total Assets ratio is an important metric for evaluating the operational performance and competitiveness of commercial banks. It helps identify areas for potential cost-cutting or efficiency improvements.
Q: How is this data collected or calculated?
A: The data is collected and calculated by the World Bank using financial statements and regulatory reporting from commercial banks.
Q: How is this trend used in economic policy?
A: This trend is closely monitored by policymakers, regulators, and analysts to assess the health and competitiveness of the banking sector, which is crucial for the broader economy.
Q: Are there update delays or limitations?
A: The data is subject to the reporting schedules and practices of commercial banks, which may result in occasional delays or limitations in coverage.
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Citation
U.S. Federal Reserve, Bank's Overhead Costs to Total Assets for United States (DDEI04USA156NWDB), retrieved from FRED.