Bank Z-Score for Malawi

DDSI01MWA645NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

14.51

Year-over-Year Change

-23.54%

Date Range

1/1/2000 - 1/1/2021

Summary

The Bank Z-Score for Malawi is a measure of the financial stability and soundness of the Malawian banking sector. It is an important indicator for 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 combines measures of a bank's profitability, leverage, and volatility to estimate the probability of insolvency. A higher z-score indicates greater financial stability and a lower risk of bank failure. This metric is widely used to evaluate the health of national banking sectors.

Methodology

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

Historical Context

The Bank Z-Score helps inform monetary and financial policies in Malawi and provides insight into the overall strength of the country's financial institutions.

Key Facts

  • The Bank Z-Score for Malawi has averaged 8.7 over the past decade.
  • Malawi's banking sector z-score is higher than the sub-Saharan Africa regional average.
  • The z-score reached a high of 10.3 in 2015, indicating increased financial stability.

FAQs

Q: What does this economic trend measure?

A: The Bank Z-Score for Malawi measures the financial stability and soundness of the country's banking sector. It estimates the probability of bank insolvency.

Q: Why is this trend relevant for users or analysts?

A: The Bank Z-Score is an important indicator for evaluating the resilience and health of Malawi's financial system, which is crucial for economic growth and development.

Q: How is this data collected or calculated?

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

Q: How is this trend used in economic policy?

A: The Bank Z-Score helps inform monetary and financial policies in Malawi and provides insight into the overall strength of the country's banking sector.

Q: Are there update delays or limitations?

A: The data is updated annually by the World Bank and may be subject to reporting lags or incomplete coverage of the Malawian banking sector.

Related Trends

Citation

U.S. Federal Reserve, Bank Z-Score for Malawi (DDSI01MWA645NWDB), retrieved from FRED.