Bank Z-Score for Saudi Arabia
DDSI01SAA645NWDB • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
24.37
Year-over-Year Change
31.33%
Date Range
1/1/2000 - 1/1/2021
Summary
The Bank Z-Score for Saudi Arabia 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 risk of bank failure.
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. A higher Z-Score indicates a lower probability of bank insolvency, reflecting a more stable and well-capitalized banking system.
Methodology
The data is collected and calculated by the World Bank using financial statement information from commercial banks in Saudi Arabia.
Historical Context
The Bank Z-Score helps inform monetary and financial stability policies in Saudi Arabia and is monitored by global institutions like the IMF.
Key Facts
- The Bank Z-Score ranges from 0 to infinity, with higher values indicating lower bank insolvency risk.
- Saudi Arabia's Bank Z-Score was 25.31 as of the latest data point.
- The Bank Z-Score is calculated using return on assets, equity to assets ratio, and the volatility of returns.
FAQs
Q: What does the Bank Z-Score for Saudi Arabia measure?
A: The Bank Z-Score is a financial stability indicator that measures the probability of bank insolvency in Saudi Arabia. It combines profitability, leverage, and volatility of returns to assess the overall soundness of the banking sector.
Q: Why is the Bank Z-Score relevant for users or analysts?
A: The Bank Z-Score is a key metric used by economists, policymakers, and financial analysts to evaluate the stability and resilience of the banking system in Saudi Arabia. It helps inform decisions around monetary policy, financial regulation, and investment strategies.
Q: How is the Bank Z-Score data collected or calculated?
A: The data is collected by the World Bank using financial statement information from commercial banks operating in Saudi Arabia. The Z-Score is calculated as a function of return on assets, the equity-to-assets ratio, and the volatility of bank returns.
Q: How is the Bank Z-Score used in economic policy?
A: The Bank Z-Score is monitored by institutions like the IMF and central banks to assess financial system stability. Policymakers use it to inform decisions around banking regulations, deposit insurance schemes, and macroprudential policies aimed at mitigating systemic risk.
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 with a lag of approximately one year. There may also be limited coverage or inconsistencies in the underlying bank-level data, which can affect the reliability of the aggregate Z-Score metric for Saudi Arabia.
Related Trends
Use of Financial Services Borrowers: Households Borrowing from Commercial Banks for Saudi Arabia
SAUFCRODCHPENUM
Value of Exports to Saudi Arabia from Arizona
AZSAUA052SCEN
Amount Outstanding of Total Debt Securities in General Government Sector, All Maturities, Residence of Issuer in Saudi Arabia
TDSAMRIAOGGSA
International Merchandise Trade Statistics: Exports: Commodities for Saudi Arabia
SAUXTEXVA01NCMLQ
Value of Exports to Saudi Arabia from Puerto Rico
PRSAUA052SCEN
Number of Identified Exporters to Saudi Arabia from Pennsylvania
PASAUA475SCEN
Citation
U.S. Federal Reserve, Bank Z-Score for Saudi Arabia (DDSI01SAA645NWDB), retrieved from FRED.