Bank Z-Score for Japan
DDSI01JPA645NWDB • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
12.86
Year-over-Year Change
14.77%
Date Range
1/1/2000 - 1/1/2021
Summary
The Bank Z-Score for Japan measures the financial stability of the Japanese 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 compares the capitalization and profitability of banks to the volatility of their returns. A higher Z-Score indicates a lower probability of bank insolvency, making it a widely-used proxy for financial stability in banking systems worldwide.
Methodology
The data is calculated by the World Bank using financial statement information from commercial banks in Japan.
Historical Context
Regulators and central banks closely monitor the Bank Z-Score to inform macroprudential policies and ensure the soundness of the financial system.
Key Facts
- The Bank Z-Score has been tracked by the World Bank since 1960.
- Japan's Bank Z-Score averaged 4.44 from 1960 to 2020.
- A higher Z-Score indicates lower banking sector risk.
FAQs
Q: What does this economic trend measure?
A: The Bank Z-Score for Japan measures the financial stability and solvency risk of the country's banking system.
Q: Why is this trend relevant for users or analysts?
A: The Bank Z-Score is a widely-used indicator of banking sector health and resilience, making it important for economists, regulators, and investors to monitor.
Q: How is this data collected or calculated?
A: The data is calculated by the World Bank using financial statement information from commercial banks in Japan.
Q: How is this trend used in economic policy?
A: Regulators and central banks use the Bank Z-Score to inform macroprudential policies and ensure the overall stability of the financial system.
Q: Are there update delays or limitations?
A: The Bank Z-Score data is published annually by the World Bank with some lag, but it provides a reliable long-term view of Japan's banking sector health.
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Citation
U.S. Federal Reserve, Bank Z-Score for Japan (DDSI01JPA645NWDB), retrieved from FRED.