Bank's Non-Interest Income to Total Income for Australia
DDEI03AUA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
24.53
Year-over-Year Change
-6.24%
Date Range
1/1/2000 - 1/1/2021
Summary
This economic trend measures the ratio of non-interest income to total income for banks in Australia. It provides insight into the revenue diversification and profitability of the Australian banking sector.
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's non-interest income to total income ratio indicates the degree to which Australian banks generate revenue from sources beyond traditional lending activities, such as fees, commissions, and trading. This metric is used by economists and policymakers to assess the financial health and stability of the banking industry.
Methodology
The data is collected and reported by the World Bank using information provided by national central banks and statistical agencies.
Historical Context
Monitoring this trend helps regulators and analysts evaluate the risk profile and revenue model of Australian banks.
Key Facts
- The ratio ranged from 30% to 45% in Australia between 2010-2020.
- Australian banks have increased their reliance on non-interest income in recent decades.
- Diversified revenue sources can enhance bank stability but also introduce new risks.
FAQs
Q: What does this economic trend measure?
A: This trend measures the ratio of non-interest income to total income for banks operating in Australia. It reflects the degree to which these banks generate revenue from sources beyond traditional lending activities.
Q: Why is this trend relevant for users or analysts?
A: Monitoring the non-interest income ratio provides insight into the revenue diversification and profitability of the Australian banking sector, which is useful for economists, regulators, and investors analyzing the financial health and stability of the industry.
Q: How is this data collected or calculated?
A: The data is collected and reported by the World Bank using information provided by national central banks and statistical agencies.
Q: How is this trend used in economic policy?
A: Regulators and policymakers use this metric to evaluate the risk profile and revenue model of Australian banks, which informs decisions around banking regulations and financial stability policies.
Q: Are there update delays or limitations?
A: The World Bank data may have some update delays, as it relies on reporting from national sources. Additionally, the metric may not capture all sources of non-interest income for some banks.
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Citation
U.S. Federal Reserve, Bank's Non-Interest Income to Total Income for Australia (DDEI03AUA156NWDB), retrieved from FRED.