Bank Z-Score for United States
DDSI01USA645NWDB • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
31.06
Year-over-Year Change
0.41%
Date Range
1/1/2000 - 1/1/2021
Summary
The Bank Z-Score for the United States measures the financial stability of the country's banking system. It is a key indicator used by economists and policymakers to assess the risk of bank failures.
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 greater financial stability and a lower probability of bank insolvency.
Methodology
The data is calculated by the World Bank using financial statements and other regulatory information.
Historical Context
The Bank Z-Score is widely referenced by central banks, financial regulators, and international organizations to monitor systemic risk in the banking sector.
Key Facts
- The Bank Z-Score has been declining in the U.S. since the 2008 financial crisis.
- A higher Z-Score indicates a lower probability of bank insolvency.
- The Z-Score is inversely related to the probability of a systemic banking crisis.
FAQs
Q: What does this economic trend measure?
A: The Bank Z-Score measures the financial stability and insolvency risk of the U.S. banking system as a whole.
Q: Why is this trend relevant for users or analysts?
A: The Bank Z-Score is a key indicator used by economists, policymakers, and regulators to assess the health and resilience of the banking sector.
Q: How is this data collected or calculated?
A: The data is calculated by the World Bank using financial statements and other regulatory information on U.S. banks.
Q: How is this trend used in economic policy?
A: Central banks and financial regulators closely monitor the Bank Z-Score to identify systemic risks and inform macroprudential policies.
Q: Are there update delays or limitations?
A: The Bank Z-Score data may have a lag of several quarters due to the time required to collect and process the underlying financial information.
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Citation
U.S. Federal Reserve, Bank Z-Score for United States (DDSI01USA645NWDB), retrieved from FRED.