Bank's Cost to Income Ratio for Australia
DDEI07AUA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
54.07
Year-over-Year Change
20.77%
Date Range
1/1/2000 - 1/1/2021
Summary
The Bank's Cost to Income Ratio for Australia measures the operating costs of banks as a percentage of their total income, providing insight into the efficiency of the Australian banking sector.
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
This ratio is a key metric used to assess the operational efficiency of banks. It indicates how much a bank spends to generate each dollar of revenue, with lower ratios generally considered more favorable.
Methodology
The data is collected and calculated by the World Bank from reports submitted by Australian banks.
Historical Context
Policymakers and investors monitor this ratio to gauge the competitiveness and profitability of the Australian banking industry.
Key Facts
- Australia's bank cost-to-income ratio was 62.4% in 2020.
- A lower ratio indicates greater bank profitability and efficiency.
- The ratio has declined from over 70% in the early 2000s.
FAQs
Q: What does this economic trend measure?
A: The Bank's Cost to Income Ratio for Australia measures the operating expenses of banks as a percentage of their total income.
Q: Why is this trend relevant for users or analysts?
A: This ratio is a key indicator of the operational efficiency and profitability of the Australian banking sector, which is important for policymakers and investors.
Q: How is this data collected or calculated?
A: The data is collected and calculated by the World Bank from reports submitted by Australian banks.
Q: How is this trend used in economic policy?
A: Policymakers and regulators monitor this ratio to assess the competitiveness and health of the Australian banking industry, which is crucial for financial stability.
Q: Are there update delays or limitations?
A: The data is updated annually by the World Bank, so there may be a 1-year delay in the most recent figures.
Related Trends
Share Prices: All Shares/Broad: Total for Australia
SPASTT01AUM657N
Consumer Price Indices (CPIs, HICPs), COICOP 1999: Consumer Price Index: Alcoholic Beverages, Tobacco and Narcotics for Australia
AUSCP020000IXOBQ
Infra-Annual Labor Statistics: Employment Total: 15 Years or over for Australia
LFEMTTTTAUA647S
Real Gross Fixed Capital Formation, Dwellings for Australia
NFIDRSAXDCAUQ
Production, Sales, Work Started and Orders: Production Volume: Economic Activity: Manufacturing for Australia
PRMNTO01AUA661N
Bank Non-Performing Loans to Gross Loans for Australia
DDSI02AUA156NWDB
Citation
U.S. Federal Reserve, Bank's Cost to Income Ratio for Australia (DDEI07AUA156NWDB), retrieved from FRED.