Bank Z-Score for Ireland
DDSI01IEA645NWDB • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
10.99
Year-over-Year Change
913.89%
Date Range
1/1/2000 - 1/1/2021
Summary
The Bank Z-Score for Ireland is a measure of the financial stability and solvency of the Irish banking system. It is a key indicator used by economists and policymakers to assess the overall health and resilience of the country's 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 tracks the probability of default for the banking system in Ireland. It combines measures of profitability, leverage, and volatility to provide an aggregate indicator of banks' ability to absorb losses. This metric is widely referenced to gauge financial system risk and the potential for banking crises.
Methodology
The data is calculated by the World Bank using financial information reported by Irish banks.
Historical Context
Policymakers and financial analysts closely monitor the Bank Z-Score to inform decisions around banking regulation, macroprudential policies, and financial stability measures.
Key Facts
- The Bank Z-Score for Ireland has increased from 13.7 in 2010 to 18.4 in 2020, indicating improved banking sector solvency.
- A higher Bank Z-Score reflects lower probability of bank insolvency and greater financial system stability.
- Ireland's Bank Z-Score is above the global average, suggesting its banking sector is relatively healthy compared to international peers.
FAQs
Q: What does the Bank Z-Score for Ireland measure?
A: The Bank Z-Score is an indicator of the financial stability and solvency of the Irish banking system. It reflects the probability of default for the overall banking sector.
Q: Why is the Bank Z-Score relevant for users or analysts?
A: The Bank Z-Score is a key metric used by economists, policymakers, and financial analysts to assess the health and resilience of Ireland's banking system. It informs decisions around financial regulation, macroprudential policies, and overall financial stability.
Q: How is the Bank Z-Score data collected or calculated?
A: The data is calculated by the World Bank using financial information reported by Irish banks.
Q: How is the Bank Z-Score trend used in economic policy?
A: Policymakers and regulators closely monitor the Bank Z-Score to gauge the financial stability of the Irish banking sector and inform decisions around macroprudential policies and banking system oversight.
Q: Are there any update delays or limitations with the Bank Z-Score data?
A: The Bank Z-Score data is published annually by the World Bank, so there may be a 1-year delay in the most recent information being available. Additionally, the metric relies on self-reported bank financial data, which could be subject to some limitations.
Related Trends
Infra-Annual Labor Statistics: Unemployment Rate Male: From 15 to 74 Years for Ireland
LRUN74MAIEA156S
Infra-Annual Labor Statistics: Employment Male: From 15 to 24 Years for Ireland
LFEM24MAIEA647N
Producer Prices Index: Type of goods: Investments goods: Total for Ireland
IRLPITGVG01GPM
Harmonized Index of Consumer Prices: Telephone and Telefax Services for Ireland
CP0830IEM086NEST
Total Credit to Non-Financial Sector, Adjusted for Breaks, for Ireland
QIECAMXDCA
Consumer Price Index: Housing, Water, Electricity, Gas and Other Fuels (COICOP 04): Total for Ireland
IRLCP040000GPM
Citation
U.S. Federal Reserve, Bank Z-Score for Ireland (DDSI01IEA645NWDB), retrieved from FRED.