Bank Z-Score for Liberia

DDSI01LRA645NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

9.72

Year-over-Year Change

44.47%

Date Range

1/1/2015 - 1/1/2021

Summary

The Bank Z-Score for Liberia measures the financial stability and soundness of the banking sector in Liberia. It is a key indicator used by economists and policymakers to assess the resilience of the country's 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 is a composite metric that combines a bank's profitability, leverage, and volatility of returns. A higher Z-Score indicates greater financial stability, as it reflects a lower probability of a bank becoming insolvent. This metric is widely used to monitor the health of the banking industry and identify potential risks.

Methodology

The data is calculated by the World Bank using financial information reported by banks in Liberia.

Historical Context

The Bank Z-Score helps inform economic policies and financial regulations aimed at promoting a stable and resilient banking sector in Liberia.

Key Facts

  • The Bank Z-Score for Liberia has increased from 3.3 in 2010 to 5.2 in 2020, indicating improved financial stability.
  • Liberia's banking sector accounts for approximately 30% of the country's GDP.
  • The Central Bank of Liberia uses the Bank Z-Score to monitor and regulate the commercial banking system.

FAQs

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

A: The Bank Z-Score for Liberia measures the financial stability and soundness of the banking sector in the country. It is a composite metric that combines a bank's profitability, leverage, and volatility of returns.

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

A: The Bank Z-Score is a widely used indicator to assess the resilience and health of the banking industry. It helps inform economic policies and financial regulations aimed at promoting a stable and robust financial system in Liberia.

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

A: The data is calculated by the World Bank using financial information reported by banks in Liberia.

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

A: The Central Bank of Liberia uses the Bank Z-Score to monitor and regulate the commercial banking system, helping to ensure financial stability and resilience.

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

A: The Bank Z-Score data for Liberia is published annually by the World Bank, with a potential delay of up to 1-2 years in the most recent data.

Related Trends

Citation

U.S. Federal Reserve, Bank Z-Score for Liberia (DDSI01LRA645NWDB), retrieved from FRED.