Bank's Overhead Costs to Total Assets for Australia

DDEI04AUA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

1.01

Year-over-Year Change

-10.67%

Date Range

1/1/2000 - 1/1/2021

Summary

This trend measures the ratio of a bank's overhead costs to its total assets in Australia. It provides insight into the efficiency 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 overhead costs to total assets ratio is an important metric that indicates how efficiently a bank manages its operating expenses relative to its asset base. It is used by economists, policymakers, and investors to assess the financial health and competitiveness of the banking industry.

Methodology

The data is collected and calculated by the World Bank using financial reporting from Australian banks.

Historical Context

This trend is closely monitored by the Reserve Bank of Australia and other financial regulators to evaluate the banking sector's operational efficiency and profitability.

Key Facts

  • Australia's bank overhead costs to total assets ratio was 2.1% in 2021.
  • The ratio has declined from a high of 2.7% in 2009, indicating improved efficiency.
  • A lower ratio suggests Australian banks are managing their costs more effectively.

FAQs

Q: What does this economic trend measure?

A: This trend measures the ratio of a bank's overhead costs, such as employee salaries and administrative expenses, to its total assets in Australia.

Q: Why is this trend relevant for users or analysts?

A: The bank's overhead costs to total assets ratio is an important indicator of the financial efficiency and profitability of the Australian banking sector, which is closely monitored by regulators and investors.

Q: How is this data collected or calculated?

A: The data is collected and calculated by the World Bank using financial reporting from Australian banks.

Q: How is this trend used in economic policy?

A: The Reserve Bank of Australia and other financial regulators closely monitor this trend to evaluate the operational efficiency and profitability of the banking industry, which is crucial for maintaining a healthy and competitive financial sector.

Q: Are there update delays or limitations?

A: The data is updated annually by the World Bank, and there may be a delay of up to 2 years in the most recent data being available.

Related Trends

Citation

U.S. Federal Reserve, Bank's Overhead Costs to Total Assets for Australia (DDEI04AUA156NWDB), retrieved from FRED.