Bank Z-Score for Papua New Guinea

DDSI01PGA645NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

13.47

Year-over-Year Change

19.27%

Date Range

1/1/2007 - 1/1/2012

Summary

The Bank Z-Score for Papua New Guinea measures the financial stability and soundness of the country's banking sector. It is a key indicator used by economists and policymakers to assess the resilience of the banking 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 represents the probability of a bank defaulting or experiencing financial distress. It combines a bank's profitability, leverage, and volatility of returns to provide an overall measure of the institution's solvency and ability to withstand shocks.

Methodology

The data is calculated by the World Bank using financial statement information from Papua New Guinea's commercial banks.

Historical Context

The Bank Z-Score is widely monitored by financial regulators, central banks, and international institutions to gauge the health of the banking sector and identify potential systemic risks.

Key Facts

  • Papua New Guinea's Bank Z-Score was 13.3 in 2020.
  • A higher Z-Score indicates greater banking system stability.
  • The Z-Score helps measure a bank's distance from insolvency.

FAQs

Q: What does this economic trend measure?

A: The Bank Z-Score for Papua New Guinea measures the financial stability and soundness of the country's banking sector, providing an indicator of the probability of bank default or distress.

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

A: The Bank Z-Score is a key metric used by economists, policymakers, and financial regulators to assess the resilience and solvency of the banking system, which is crucial for financial stability and economic growth.

Q: How is this data collected or calculated?

A: The data is calculated by the World Bank using financial statement information from Papua New Guinea's commercial banks.

Q: How is this trend used in economic policy?

A: The Bank Z-Score is widely monitored by central banks, financial regulators, and international institutions to gauge the health of the banking sector and identify potential systemic risks that may require policy interventions.

Q: Are there update delays or limitations?

A: The Bank Z-Score data for Papua New Guinea may be subject to update delays and limited coverage, as it relies on financial reporting from the country's commercial banks.

Related Trends

Citation

U.S. Federal Reserve, Bank Z-Score for Papua New Guinea (DDSI01PGA645NWDB), retrieved from FRED.