Bank's Return on Assets for United States

DDEI05USA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

1.26

Year-over-Year Change

671.14%

Date Range

1/1/2000 - 1/1/2021

Summary

The Bank's Return on Assets (ROA) for the United States measures the profitability of the banking sector. It is a key indicator for evaluating the financial health and performance of the overall banking industry.

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 Return on Assets (ROA) represents the ratio of a bank's net income to its total assets. It provides insight into how effectively a bank is utilizing its assets to generate profits. ROA is widely used by economists, policymakers, and analysts to assess the efficiency and competitiveness of the banking sector.

Methodology

The data is collected and reported by the World Bank, based on financial information reported by individual banks.

Historical Context

The Bank's ROA trend is monitored by central banks, regulators, and market participants to gauge the stability and profitability of the banking system.

Key Facts

  • The U.S. bank ROA averaged 1.04% in 2021.
  • ROA is a widely used metric for comparing banking sector efficiency across countries.
  • Declining ROA can signal increased risk in the banking system.

FAQs

Q: What does this economic trend measure?

A: The Bank's Return on Assets (ROA) measures the profitability of the U.S. banking sector by calculating the ratio of net income to total assets.

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

A: The bank ROA is a key indicator of the financial health and performance of the overall banking industry, providing insights that are important for economists, policymakers, and market participants.

Q: How is this data collected or calculated?

A: The data is collected and reported by the World Bank, based on financial information reported by individual banks.

Q: How is this trend used in economic policy?

A: The bank ROA trend is monitored by central banks, regulators, and market participants to gauge the stability and profitability of the banking system, which is crucial for financial sector and macroeconomic policy.

Q: Are there update delays or limitations?

A: There may be some delay in the availability of the latest data, as it is dependent on the reporting timeline of individual banks and the World Bank's data publication schedule.

Related Trends

Citation

U.S. Federal Reserve, Bank's Return on Assets for United States (DDEI05USA156NWDB), retrieved from FRED.