Bank Z-Score for Hong Kong SAR, China

DDSI01HKA645NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

19.75

Year-over-Year Change

26.77%

Date Range

1/1/2000 - 1/1/2021

Summary

The Bank Z-Score for Hong Kong SAR, China measures the financial stability and insolvency risk of the banking sector. It is a key indicator for policymakers and analysts monitoring the health of Hong Kong's financial system.

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 calculates the probability of a banking system's insolvency by comparing banks' buffers (capitalization and returns) against the volatility of those returns. A higher Z-Score indicates greater financial stability and lower insolvency risk.

Methodology

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

Historical Context

The Bank Z-Score helps assess financial sector vulnerabilities and systemic risk in Hong Kong.

Key Facts

  • A higher Z-Score indicates greater bank solvency.
  • Hong Kong's Z-Score was 25.93 in 2020.
  • The Z-Score measures the distance to insolvency for a banking system.

FAQs

Q: What does this economic trend measure?

A: The Bank Z-Score measures the financial stability and insolvency risk of Hong Kong's banking sector. It compares banks' buffers against the volatility of their returns.

Q: Why is this trend relevant for users or analysts?

A: The Bank Z-Score is a key indicator for assessing the health and vulnerabilities of Hong Kong's financial system, which is crucial for policymakers and market analysts.

Q: How is this data collected or calculated?

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

Q: How is this trend used in economic policy?

A: The Bank Z-Score helps policymakers and regulators monitor systemic risk and financial stability in Hong Kong's banking sector, informing macroprudential policies.

Q: Are there update delays or limitations?

A: The data may have update delays due to the time required to collect and process bank-level information.

Related Trends

Citation

U.S. Federal Reserve, Bank Z-Score for Hong Kong SAR, China (DDSI01HKA645NWDB), retrieved from FRED.