KBW Bank Index

What is ‘KBW Bank Index’

An economic index consisting of the stocks of 24 banking companies. This index serves as a benchmark of the banking sector. This index trades on the Philadelphia Stock Exchange, where it was created. The KBW Index is named after Keefe, Bruyette and Woods, a recognized authority in the banking industry.

Explaining ‘KBW Bank Index’

The KBW Index trades under ticker symbol BKX. The index is weighted according to capitalization and represents major banks and money centers from across the country. Mathematically, the index is based on a tenth of the value of the Keefe, Bruyette and Woods Index (KBWI). It began trading options in September of 1992.

Further Reading

  • Global liquidity, market sentiment, and financial stability indices – www.sciencedirect.com [PDF]
  • Size and Day-of-the-Week Effect in the Banking Industry: A Comparative Analysis Based on Economic Conditions – ideas.repec.org [PDF]
  • Return dependence and the limits of product diversification in financial firms – onlinelibrary.wiley.com [PDF]
  • Risk-adjusted performance: Lessons from the Financial Crisis – jsf.pm-research.com [PDF]
  • The stimulus schemes will stress the financial system – www.emerald.com [PDF]
  • Volatility Spillovers between US Banking Industry and Bitcoin Market: Risk Implications for Banking Industry – dl.acm.org [PDF]