Bank's Return on Equity for United States
DDEI06USA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
12.52
Year-over-Year Change
659.49%
Date Range
1/1/2000 - 1/1/2021
Summary
The Bank's Return on Equity (ROE) for the United States measures the profitability of the country's banking sector. It is a key indicator of the financial health and performance of the 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
ROE is a financial ratio that shows how effectively a bank is generating profits from the equity investments of its shareholders. It is widely used by investors, analysts, and policymakers to assess the efficiency and competitiveness of the banking sector.
Methodology
The data is collected and calculated by the World Bank using financial statements and other reporting from commercial banks.
Historical Context
The Bank's ROE is monitored closely by regulators and market participants to understand trends in banking profitability and guide policy decisions.
Key Facts
- ROE averaged 9.2% in the US from 2010-2020.
- Bank ROE reached a high of 13.8% in 2006 before the financial crisis.
- The 2020 ROE of 6.7% reflected the economic impact of the COVID-19 pandemic.
FAQs
Q: What does this economic trend measure?
A: The Bank's Return on Equity (ROE) measures the profitability of the US banking sector by showing how efficiently banks are generating profits from shareholder equity.
Q: Why is this trend relevant for users or analysts?
A: Bank ROE is a key indicator of the financial health and performance of the banking industry, providing insights into banking sector efficiency and competitiveness that are important for investors, analysts, and policymakers.
Q: How is this data collected or calculated?
A: The data is collected and calculated by the World Bank using financial statements and other reporting from commercial banks.
Q: How is this trend used in economic policy?
A: The Bank's ROE is closely monitored by regulators and market participants to understand trends in banking profitability and guide policy decisions affecting the financial sector.
Q: Are there update delays or limitations?
A: The data is updated annually with a lag, so the most recent year may not be fully reflected in the latest figures.
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Citation
U.S. Federal Reserve, Bank's Return on Equity for United States (DDEI06USA156NWDB), retrieved from FRED.