Lerner Index in Banking Market for Belarus

DDOI04BYA066NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

0.23

Year-over-Year Change

17.37%

Date Range

1/1/1997 - 1/1/2014

Summary

The Lerner Index in Banking Market for Belarus measures the degree of market power exercised by banks in the Belarusian banking sector. It is a key metric for evaluating the competitiveness and efficiency of the country's financial 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 Lerner Index quantifies the markup that firms can charge over their marginal cost. For the banking sector, it provides insights into the level of competition, with a higher index indicating greater market power and less competition.

Methodology

The index is calculated as the difference between output prices and marginal costs, divided by output prices.

Historical Context

Policymakers use the Lerner Index to assess the effectiveness of banking regulations and competition policies.

Key Facts

  • The Lerner Index ranges from 0 (perfect competition) to 1 (monopoly).
  • A higher Lerner Index indicates less competitive banking markets.
  • Belarus' Lerner Index has fluctuated between 0.2-0.4 over the past decade.

FAQs

Q: What does the Lerner Index in Banking Market for Belarus measure?

A: The Lerner Index measures the degree of market power exercised by banks in the Belarusian banking sector, providing insights into the level of competition.

Q: Why is the Lerner Index relevant for users or analysts?

A: The Lerner Index is a key metric for evaluating the competitiveness and efficiency of a country's financial system, which is important for policymakers and market participants.

Q: How is the Lerner Index data collected or calculated?

A: The index is calculated as the difference between output prices and marginal costs, divided by output prices.

Q: How is the Lerner Index used in economic policy?

A: Policymakers use the Lerner Index to assess the effectiveness of banking regulations and competition policies in the Belarusian financial sector.

Q: Are there any update delays or limitations for the Lerner Index data?

A: The Lerner Index data may be subject to occasional delays or revisions, as it is derived from underlying banking sector data.

Related Trends

Citation

U.S. Federal Reserve, Lerner Index in Banking Market for Belarus (DDOI04BYA066NWDB), retrieved from FRED.