Bank's Cost to Income Ratio for Canada
DDEI07CAA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
57.35
Year-over-Year Change
48.38%
Date Range
1/1/2000 - 1/1/2021
Summary
The Bank's Cost to Income Ratio for Canada measures the operating expenses of Canadian banks as a percentage of their total income. This metric is a key indicator of banking sector 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 Cost to Income Ratio is a widely used performance metric in the banking industry that shows how effectively a bank is managing its costs relative to its revenue generation. It is an important benchmark for analyzing the operational efficiency and profitability of Canadian banks.
Methodology
The data is calculated by the World Bank using financial reports from Canadian banks.
Historical Context
Policymakers and market analysts closely monitor this ratio to assess the health and competitiveness of the Canadian banking sector.
Key Facts
- The average Cost to Income Ratio for Canadian banks is around 55%.
- A lower ratio indicates higher operational efficiency and profitability.
- The ratio can vary significantly across different banking business models and market conditions.
FAQs
Q: What does this economic trend measure?
A: The Bank's Cost to Income Ratio for Canada measures the operating expenses of Canadian banks as a percentage of their total income, providing insight into the banking sector's efficiency and profitability.
Q: Why is this trend relevant for users or analysts?
A: This metric is a key indicator of the operational performance and competitiveness of the Canadian banking industry, making it relevant for policymakers, investors, and market analysts.
Q: How is this data collected or calculated?
A: The data is calculated by the World Bank using financial reports from Canadian banks.
Q: How is this trend used in economic policy?
A: Policymakers and regulators closely monitor the Cost to Income Ratio to assess the health and efficiency of the Canadian banking sector, which is crucial for maintaining a stable and competitive financial system.
Q: Are there update delays or limitations?
A: The data is published with a lag, and the frequency of updates may vary depending on the World Bank's reporting schedule.
Related Trends
Production, Sales, Work Started and Orders: Construction Work Started on Dwellings: Economic Activity: Construction of Buildings for Canada
WSCNDW01CAQ661S
Consumer Price Index: OECD Groups: Services Less Housing: Total for Canada
CANCPGRLH01GPQ
Sales: Retail Trade: Total Retail Trade: Volume for Canada
CANSLRTTO01GYSAM
Private Final Consumption Expenditure Implicit Price Deflator in Canada
CANPCEDEFQISNAQ
Population, Total for Canada
POPTOTCAA647NWDB
Private Credit by Deposit Money Banks to GDP for Canada
DDDI01CAA156NWDB
Citation
U.S. Federal Reserve, Bank's Cost to Income Ratio for Canada (DDEI07CAA156NWDB), retrieved from FRED.