Bank Z-Score for Canada

DDSI01CAA645NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

13.85

Year-over-Year Change

-26.81%

Date Range

1/1/2000 - 1/1/2021

Summary

The Bank Z-Score for Canada measures the financial stability of the Canadian banking system. It is an important indicator for economists and policymakers assessing systemic risk.

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 Z-Score aggregates data on the capitalization and earnings of Canadian banks to produce a composite metric of financial soundness. Higher Z-Scores indicate a lower probability of bank insolvency.

Methodology

The data is calculated by the World Bank using confidential financial reports from Canadian banks.

Historical Context

The Bank Z-Score helps regulators and investors monitor the health of the Canadian banking sector.

Key Facts

  • Canada's bank Z-Score has averaged 7.8 over the past decade.
  • Lower Z-Scores indicate greater risk of bank insolvency.
  • The metric helps assess the resilience of the Canadian financial system.

FAQs

Q: What does this economic trend measure?

A: The Bank Z-Score for Canada is a composite metric that assesses the financial soundness and insolvency risk of the Canadian banking system.

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

A: The Bank Z-Score is an important indicator for monitoring systemic risk and the overall health of the Canadian banking sector.

Q: How is this data collected or calculated?

A: The data is calculated by the World Bank using confidential financial reports from Canadian banks.

Q: How is this trend used in economic policy?

A: Regulators and policymakers use the Bank Z-Score to assess the stability and resilience of the Canadian financial system.

Q: Are there update delays or limitations?

A: The data is published annually with a 1-2 year delay, which may limit its use for real-time monitoring.

Related Trends

Citation

U.S. Federal Reserve, Bank Z-Score for Canada (DDSI01CAA645NWDB), retrieved from FRED.