Bank Z-Score for Finland

DDSI01FIA645NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

17.11

Year-over-Year Change

32.11%

Date Range

1/1/2000 - 1/1/2021

Summary

The Bank Z-Score for Finland is a financial stability indicator that measures the probability of a bank defaulting. It is an important metric for assessing the health and resilience of the Finnish banking sector.

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 compares a bank's buffers (capitalization and returns) with the volatility of those returns. A higher Z-Score indicates a lower probability of bank insolvency, making it a key metric for financial regulators and investors.

Methodology

The data is calculated by the World Bank using bank-level financial statements.

Historical Context

The Bank Z-Score helps policymakers monitor financial system stability and identify potential risks.

Key Facts

  • The Bank Z-Score ranges from 0 to infinity, with higher values indicating greater stability.
  • Finland's Bank Z-Score averaged 4.44 between 2000 and 2020.
  • The Bank Z-Score is inversely related to the probability of a bank's insolvency.

FAQs

Q: What does the Bank Z-Score for Finland measure?

A: The Bank Z-Score for Finland measures the financial stability and likelihood of default for banks operating in the Finnish market.

Q: Why is the Bank Z-Score relevant for users or analysts?

A: The Bank Z-Score is an important indicator of banking sector health and resilience, providing insights for financial regulators, investors, and policymakers.

Q: How is the Bank Z-Score for Finland data collected or calculated?

A: The data is calculated by the World Bank using bank-level financial statements from institutions operating in Finland.

Q: How is the Bank Z-Score used in economic policy?

A: Policymakers and regulators use the Bank Z-Score to monitor financial system stability and identify potential risks to the banking sector.

Q: Are there any update delays or limitations with the Bank Z-Score data?

A: The Bank Z-Score data may have update lags due to the time required to collect and process bank-level financial information.

Related Trends

Citation

U.S. Federal Reserve, Bank Z-Score for Finland (DDSI01FIA645NWDB), retrieved from FRED.