Bank Z-Score for Denmark

DDSI01DKA645NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

26.42

Year-over-Year Change

115.72%

Date Range

1/1/2000 - 1/1/2021

Summary

The Bank Z-Score for Denmark is an indicator of the financial stability and solvency of the Danish banking sector. It measures the distance from insolvency, providing insights into the overall risk profile of the country's banks.

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 compares a bank's profitability and capitalization to the volatility of its returns. A higher Z-Score indicates that a bank is more stable and less likely to become insolvent. This metric is widely used by policymakers, regulators, and analysts to assess the health and resilience of the banking system.

Methodology

The data is calculated by the World Bank using bank-level data.

Historical Context

The Bank Z-Score for Denmark is an important metric for monitoring financial stability and informing macroprudential policies.

Key Facts

  • The Bank Z-Score for Denmark has increased from 12.7 in 2000 to 18.4 in 2020, indicating improved banking sector stability.
  • Denmark's Bank Z-Score is higher than the OECD average, reflecting the relative strength of its banking system.
  • The Bank Z-Score is an important metric for assessing the risk of a banking crisis in Denmark.

FAQs

Q: What does the Bank Z-Score for Denmark measure?

A: The Bank Z-Score measures the financial stability and solvency of the Danish banking sector. It indicates the distance from insolvency for the country's banks.

Q: Why is the Bank Z-Score for Denmark relevant for users or analysts?

A: The Bank Z-Score is a key indicator of the overall health and resilience of the Danish banking system, which is important for policymakers, regulators, and market participants.

Q: How is the Bank Z-Score for Denmark data collected or calculated?

A: The data is calculated by the World Bank using bank-level data for Denmark.

Q: How is the Bank Z-Score for Denmark used in economic policy?

A: The Bank Z-Score is used by policymakers and regulators to monitor financial stability and inform macroprudential policies aimed at ensuring the resilience of the Danish banking sector.

Q: Are there any update delays or limitations to the Bank Z-Score for Denmark data?

A: The Bank Z-Score data may be subject to occasional delays in reporting, and it relies on the availability and quality of underlying bank-level data.

Related Trends

Citation

U.S. Federal Reserve, Bank Z-Score for Denmark (DDSI01DKA645NWDB), retrieved from FRED.