Bank Z-Score for Sri Lanka
DDSI01LKA645NWDB • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
35.09
Year-over-Year Change
0.16%
Date Range
1/1/2011 - 1/1/2021
Summary
The Bank Z-Score for Sri Lanka measures the financial stability and resilience of the country's banking system. It is a key metric used by economists and policymakers to assess banking sector 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 is a composite indicator that combines profitability, leverage, and volatility to estimate the probability of a bank defaulting or experiencing financial distress. It is widely used to monitor banking system soundness and solvency across countries.
Methodology
The data is calculated by the World Bank using bank-level financial statements and regulatory reporting.
Historical Context
Policymakers and investors closely monitor the Bank Z-Score to gauge Sri Lanka's financial system stability and risks.
Key Facts
- The Bank Z-Score ranges from 0 to 100, with higher values indicating greater banking system stability.
- Sri Lanka's Bank Z-Score has declined in recent years, signaling increased financial sector vulnerability.
- The Bank Z-Score is a widely used early warning indicator of potential banking crises.
FAQs
Q: What does the Bank Z-Score for Sri Lanka measure?
A: The Bank Z-Score is a composite indicator that measures the financial stability and default risk of Sri Lanka's banking system.
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 investors to assess the soundness and resilience of Sri Lanka's financial sector.
Q: How is the Bank Z-Score data collected or calculated?
A: The World Bank calculates the Bank Z-Score using bank-level financial statements and regulatory reporting data.
Q: How is the Bank Z-Score used in economic policy?
A: Policymakers and regulators monitor the Bank Z-Score to identify risks and vulnerabilities in Sri Lanka's banking system, informing macroprudential policies and financial stability measures.
Q: Are there any update delays or limitations with the Bank Z-Score data?
A: The Bank Z-Score data may be subject to reporting lags, and the methodology can vary across countries, limiting direct cross-country comparisons.
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Citation
U.S. Federal Reserve, Bank Z-Score for Sri Lanka (DDSI01LKA645NWDB), retrieved from FRED.