According to the data source, a banks Z score is defined as "the probability of default of a country's banking system, calculated as a weighted average of the z-scores of a country's individual banks (the weights are based on the individual banks' total assets). Z-score compares a bank's buffers (capitalization and returns) with the volatility of those returns.
In 2017, the banking system in Luxembourg had the highest probability of default with a Z score of 44.7 percent.
Probability of default of a country's banking system (Z-score) of banks in Europe 2017, by country
The source added the following definition. "Z-score is estimated as (ROA+equity/assets)/sd(ROA); sd(ROA) is the standard deviation of ROA. It captures the probability of default of a country's banking system, calculated as a weighted average of the z-scores of a country's individual banks (the weights are based on the individual banks' total assets). Z-score compares a bank's buffers (capitalization and returns) with the volatility of those returns. It is estimated as (ROA+(equity/assets))/sd(ROA); sd(ROA) is the standard deviation of ROA. (Calculated from underlying bank-by-bank unconsolidated data from Bankscope)"
Profit from the additional features of your individual account
Currently, you are using a shared account. To use individual functions (e.g., mark statistics as favourites, set
statistic alerts) please log in with your personal account.
If you are an admin, please authenticate by logging in again.
Learn more about how Statista can support your business.
World Bank. (October 31, 2019). Probability of default of a country's banking system (Z-score) of banks in Europe 2017, by country [Graph]. In Statista. Retrieved September 20, 2024, from https://www-statista-com.ezproxy.canberra.edu.au/statistics/1078384/bank-z-score-in-europe-by-country/
World Bank. "Probability of default of a country's banking system (Z-score) of banks in Europe 2017, by country." Chart. October 31, 2019. Statista. Accessed September 20, 2024. https://www-statista-com.ezproxy.canberra.edu.au/statistics/1078384/bank-z-score-in-europe-by-country/
World Bank. (2019). Probability of default of a country's banking system (Z-score) of banks in Europe 2017, by country. Statista. Statista Inc.. Accessed: September 20, 2024. https://www-statista-com.ezproxy.canberra.edu.au/statistics/1078384/bank-z-score-in-europe-by-country/
World Bank. "Probability of Default of a Country's Banking System (Z-score) of Banks in Europe 2017, by Country." Statista, Statista Inc., 31 Oct 2019, https://www-statista-com.ezproxy.canberra.edu.au/statistics/1078384/bank-z-score-in-europe-by-country/
World Bank, Probability of default of a country's banking system (Z-score) of banks in Europe 2017, by country Statista, https://www-statista-com.ezproxy.canberra.edu.au/statistics/1078384/bank-z-score-in-europe-by-country/ (last visited September 20, 2024)
Probability of default of a country's banking system (Z-score) of banks in Europe 2017, by country [Graph], World Bank, October 31, 2019. [Online]. Available: https://www-statista-com.ezproxy.canberra.edu.au/statistics/1078384/bank-z-score-in-europe-by-country/