Bank Z-Score for Nicaragua
DDSI01NIA645NWDB • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
25.13
Year-over-Year Change
53.16%
Date Range
1/1/2000 - 1/1/2021
Summary
The Bank Z-Score for Nicaragua is an indicator of the financial stability and solvency of the Nicaraguan banking system. It measures the distance to insolvency, providing insight into the overall health and resilience of the country's banks.
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 a bank's profitability and capitalization to its asset volatility, quantifying the probability of default. This metric is widely used by economists and policymakers to assess systemic banking risk and financial sector vulnerability.
Methodology
The data is calculated by the World Bank using financial statements from Nicaraguan banks.
Historical Context
The Bank Z-Score is a key input for monitoring financial stability and informing macroprudential policies.
Key Facts
- Higher Z-Scores indicate greater bank solvency.
- The average Z-Score for Nicaraguan banks was 13.4 in 2021.
- Z-Scores below 0 suggest a high probability of bank failure.
FAQs
Q: What does the Bank Z-Score for Nicaragua measure?
A: The Bank Z-Score measures the financial stability and solvency of the Nicaraguan banking system. It quantifies the probability of bank insolvency or default.
Q: Why is the Bank Z-Score for Nicaragua relevant for users or analysts?
A: The Bank Z-Score provides insight into the overall health and resilience of Nicaragua's banking sector, which is crucial for assessing systemic financial stability and informing macroeconomic policies.
Q: How is the Bank Z-Score for Nicaragua data collected or calculated?
A: The data is calculated by the World Bank using financial statements from Nicaraguan banks.
Q: How is the Bank Z-Score for Nicaragua used in economic policy?
A: The Bank Z-Score is a key input for monitoring financial stability and informing macroprudential policies aimed at ensuring the resilience of the Nicaraguan banking system.
Q: Are there any update delays or limitations for the Bank Z-Score for Nicaragua data?
A: The Bank Z-Score data may be subject to reporting lags or limitations in data availability from Nicaraguan banks.
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Citation
U.S. Federal Reserve, Bank Z-Score for Nicaragua (DDSI01NIA645NWDB), retrieved from FRED.