Bank Z-Score for Tonga
DDSI01TOA645NWDB • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
5.10
Year-over-Year Change
-59.41%
Date Range
1/1/1996 - 1/1/2009
Summary
The Bank Z-Score for Tonga measures the financial stability and solvency of the banking system in Tonga. It is a key indicator used by economists and policymakers to assess the risk profile of the country's banking sector.
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 index that combines measures of a bank's profitability, leverage, and volatility of returns. A higher Z-Score indicates greater financial stability and a lower probability of bank failure. This metric provides insight into the overall health and resilience of Tonga's banking system.
Methodology
The data is calculated by the World Bank using financial statements and other reporting from Tonga's central bank and commercial banks.
Historical Context
The Bank Z-Score is used by policymakers, investors, and analysts to evaluate financial system risk and monitor banking sector stability in Tonga.
Key Facts
- The Bank Z-Score for Tonga in 2021 was 16.93.
- A higher Z-Score indicates lower probability of bank failure.
- Tonga's Z-Score has trended upward since 2015.
FAQs
Q: What does this economic trend measure?
A: The Bank Z-Score for Tonga measures the financial stability and solvency of Tonga's banking system. It is a composite index that combines profitability, leverage, and volatility of returns.
Q: Why is this trend relevant for users or analysts?
A: The Bank Z-Score provides insight into the overall health and resilience of Tonga's banking sector, which is crucial for policymakers, investors, and analysts assessing financial system risk.
Q: How is this data collected or calculated?
A: The data is calculated by the World Bank using financial statements and other reporting from Tonga's central bank and commercial banks.
Q: How is this trend used in economic policy?
A: The Bank Z-Score is used by policymakers in Tonga to monitor banking sector stability and evaluate financial system risk.
Q: Are there update delays or limitations?
A: The data is published annually by the World Bank, so there may be a delay of up to a year in the most recent figures.
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Citation
U.S. Federal Reserve, Bank Z-Score for Tonga (DDSI01TOA645NWDB), retrieved from FRED.