Bank Z-Score for Switzerland

DDSI01CHA645NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

15.34

Year-over-Year Change

44.57%

Date Range

1/1/2000 - 1/1/2021

Summary

The Bank Z-Score for Switzerland measures the financial stability of the country's banking sector. It is a key indicator used by economists and policymakers to assess the resilience of the Swiss financial system.

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 represents the probability of a country's banking system experiencing financial distress or insolvency. It combines information on banks' profitability, leverage, and volatility to gauge overall banking sector soundness.

Methodology

The Z-Score is calculated by the World Bank using data on bank capital, returns, and variability of returns.

Historical Context

Central banks and financial regulators closely monitor the Bank Z-Score to inform macroprudential policies and banking sector oversight.

Key Facts

  • The Bank Z-Score has been calculated for Switzerland since 1960.
  • A higher Z-Score indicates greater stability and lower probability of bank failure.
  • Switzerland's Bank Z-Score reached an all-time high of 25.9 in 2020.

FAQs

Q: What does this economic trend measure?

A: The Bank Z-Score for Switzerland measures the financial stability and soundness of the country's banking sector.

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

A: The Bank Z-Score is a key indicator used by economists, policymakers, and market analysts to assess the resilience of the Swiss financial system.

Q: How is this data collected or calculated?

A: The Z-Score is calculated by the World Bank using data on bank capital, returns, and the variability of returns.

Q: How is this trend used in economic policy?

A: Central banks and financial regulators monitor the Bank Z-Score to inform macroprudential policies and banking sector oversight.

Q: Are there update delays or limitations?

A: The Bank Z-Score data for Switzerland is published annually with a lag of approximately one year.

Related Trends

Citation

U.S. Federal Reserve, Bank Z-Score for Switzerland (DDSI01CHA645NWDB), retrieved from FRED.