Bank's Cost to Income Ratio for United States
DDEI07USA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
62.73
Year-over-Year Change
7.51%
Date Range
1/1/2000 - 1/1/2021
Summary
The Bank's Cost to Income Ratio for the United States measures the proportion of a bank's operating expenses to its operating income, indicating efficiency and profitability.
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 Cost to Income Ratio is a key metric used to assess the operational efficiency of banks. It provides insights into how well a bank is managing its costs relative to the revenue it generates, which is crucial for evaluating the bank's long-term viability and profitability.
Methodology
The data is calculated by the World Bank using financial information reported by banks.
Historical Context
Policymakers and analysts monitor this ratio to gauge the health and competitiveness of the banking sector.
Key Facts
- The lower the ratio, the more efficient the bank.
- High ratios may indicate a need for cost-cutting measures.
- The ratio can vary significantly across different banking models and markets.
FAQs
Q: What does this economic trend measure?
A: The Bank's Cost to Income Ratio measures the proportion of a bank's operating expenses to its operating income, indicating the bank's efficiency and profitability.
Q: Why is this trend relevant for users or analysts?
A: This ratio is a crucial metric for evaluating the operational efficiency and long-term viability of banks, which is important for policymakers, investors, and other financial stakeholders.
Q: How is this data collected or calculated?
A: The data is calculated by the World Bank using financial information reported by banks.
Q: How is this trend used in economic policy?
A: Policymakers and analysts monitor this ratio to gauge the health and competitiveness of the banking sector, which is crucial for maintaining a stable and efficient financial system.
Q: Are there update delays or limitations?
A: The data may be subject to reporting lags or differences in accounting practices across banks and countries.
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Citation
U.S. Federal Reserve, Bank's Cost to Income Ratio for United States (DDEI07USA156NWDB), retrieved from FRED.