Bank Z-Score for Hungary
DDSI01HUA645NWDB • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
7.07
Year-over-Year Change
-1.70%
Date Range
1/1/2000 - 1/1/2021
Summary
The Bank Z-Score for Hungary measures the financial stability and soundness of the country's banking sector. It is a key indicator used by economists and policymakers to assess the overall health and risk profile of the Hungarian 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 is a composite metric that combines a bank's profitability, leverage, and volatility of returns. It reflects the probability that the bank's assets will fall below its liabilities, indicating the bank's distance from insolvency. Monitoring this trend helps identify systemic banking risks and informs financial regulation.
Methodology
The data is calculated by the World Bank using annual financial statements from commercial banks in Hungary.
Historical Context
Policymakers and investors closely follow the Bank Z-Score to gauge the resilience of the Hungarian banking sector and potential financial stability risks.
Key Facts
- The Bank Z-Score is expressed as a ratio, with higher values indicating greater financial stability.
- Hungary's Bank Z-Score has remained relatively stable in recent years, reflecting a sound banking system.
- Declining Bank Z-Scores can signal heightened financial risks and the potential for banking crises.
FAQs
Q: What does this economic trend measure?
A: The Bank Z-Score for Hungary measures the financial stability and soundness of the country's banking sector. It reflects the probability of insolvency for commercial banks.
Q: Why is this trend relevant for users or analysts?
A: The Bank Z-Score is a key indicator used by economists and policymakers to assess the overall health and risk profile of the Hungarian financial system, which informs financial regulation and stability policies.
Q: How is this data collected or calculated?
A: The data is calculated by the World Bank using annual financial statements from commercial banks in Hungary.
Q: How is this trend used in economic policy?
A: Policymakers and investors closely follow the Bank Z-Score to gauge the resilience of the Hungarian banking sector and potential financial stability risks, which informs policy decisions.
Q: Are there update delays or limitations?
A: The Bank Z-Score data is released annually, so there may be a delay in reflecting the most recent changes in the Hungarian banking sector.
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Citation
U.S. Federal Reserve, Bank Z-Score for Hungary (DDSI01HUA645NWDB), retrieved from FRED.