Bank Z-Score for Australia
DDSI01AUA645NWDB • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
14.15
Year-over-Year Change
-4.71%
Date Range
1/1/2000 - 1/1/2021
Summary
The Bank Z-Score for Australia measures the financial soundness and stability of the country's banking sector. It is a key indicator used by economists and policymakers to assess the risk of bank insolvency.
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 Z-Score is a composite metric that combines a bank's profitability, leverage, and volatility of returns. Higher z-scores indicate a lower probability of bank failure, reflecting more stable and profitable banking systems.
Methodology
The data is calculated by the World Bank using bank-level financial statements and supervisory information.
Historical Context
The Bank Z-Score is widely used by central banks, financial regulators, and investors to monitor banking system health and identify potential vulnerabilities.
Key Facts
- The Bank Z-Score for Australia has averaged 7.4 over the past decade.
- A higher Bank Z-Score indicates a lower probability of bank insolvency.
- The Bank Z-Score is calculated using data from individual bank financial statements.
FAQs
Q: What does the Bank Z-Score for Australia measure?
A: The Bank Z-Score measures the financial soundness and stability of Australia's banking sector. It is a composite metric that combines profitability, leverage, and volatility of returns to assess the risk of bank insolvency.
Q: Why is the Bank Z-Score relevant for users or analysts?
A: The Bank Z-Score is a key indicator used by economists, policymakers, and investors to monitor the health and stability of the banking system. It helps identify potential vulnerabilities and assess the overall risk of the financial sector.
Q: How is the Bank Z-Score data collected or calculated?
A: The data is calculated by the World Bank using financial statement and supervisory information from individual banks.
Q: How is the Bank Z-Score used in economic policy?
A: Central banks, financial regulators, and investors rely on the Bank Z-Score to assess the stability of the banking system and identify risks that may require policy intervention or risk management strategies.
Q: Are there any update delays or limitations with the Bank Z-Score data?
A: The Bank Z-Score data is published annually by the World Bank, so there may be a delay of up to a year before the latest figures are available. Additionally, the metric relies on bank-level data, which can be subject to reporting variations across institutions.
Related Trends
Consumer Price Index: OECD Groups: Housing: Housing Excluding Imputed Rentals for Housing for Australia
AUSCPGRHO02IXNBQ
Sales: Retail Trade: Car Registration: Passenger Cars for Australia
SLRTCR03AUA180N
Consumer Price Index: Total Food Excluding Restaurants for Australia
CPGDFD02AUA657N
Bank's Overhead Costs to Total Assets for Australia
DDEI04AUA156NWDB
Infra-Annual Labor Statistics: Labor Force Total: From 25 to 54 Years for Australia
LFAC25TTAUM647S
Infra-Annual Labor Statistics: Labor Force Participation Rate Total: From 15 to 24 Years for Australia
LRAC24TTAUM156S
Citation
U.S. Federal Reserve, Bank Z-Score for Australia (DDSI01AUA645NWDB), retrieved from FRED.