Bank Z-Score for Norway

DDSI01NOA645NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

12.57

Year-over-Year Change

93.17%

Date Range

1/1/2000 - 1/1/2021

Summary

The Bank Z-Score for Norway is a key metric that measures the probability of a country's banking system defaulting. It is an important indicator of financial stability and risk.

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 tracks the financial soundness of a country's banking sector by comparing banks' buffers (capitalization and returns) against the volatility of those returns. It is widely used by economists, policymakers, and investors to assess the resilience of a nation's financial system.

Methodology

The data is calculated by the World Bank using bank-level data on capital, returns, and volatility.

Historical Context

The Bank Z-Score helps inform decisions around financial regulation, macroprudential policy, and systemic risk monitoring.

Key Facts

  • Higher Bank Z-Scores indicate lower probability of banking crises.
  • Norway's Bank Z-Score was 4.75 in 2020.
  • The Bank Z-Score has trended upward in Norway since the global financial crisis.

FAQs

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

A: The Bank Z-Score measures the financial soundness and stability of Norway's banking system. It indicates the probability of the banking sector defaulting.

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

A: The Bank Z-Score is a key indicator of financial stability and systemic risk in Norway. It helps inform policy decisions, investment strategies, and assessments of a country's economic resilience.

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

A: The data is calculated by the World Bank using bank-level information on capital, returns, and volatility.

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

A: Policymakers, regulators, and analysts use the Bank Z-Score to monitor the health of Norway's financial system and inform macroprudential policies aimed at promoting stability.

Q: Are there any update delays or limitations with this data?

A: The Bank Z-Score data has some lag, as it relies on bank-level information that may not be immediately available. Additionally, the metric may not capture all dimensions of financial stability.

Related Trends

Citation

U.S. Federal Reserve, Bank Z-Score for Norway (DDSI01NOA645NWDB), retrieved from FRED.