Bank's Overhead Costs to Total Assets for Sri Lanka
DDEI04LKA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
1.89
Year-over-Year Change
-34.21%
Date Range
1/1/2012 - 1/1/2021
Summary
The 'Bank's Overhead Costs to Total Assets for Sri Lanka' metric measures the ratio of a bank's operating expenses to its total assets, providing insight into the efficiency of Sri Lanka'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
This economic indicator represents the operational efficiency of banks in Sri Lanka, as a higher ratio suggests higher overhead costs relative to the bank's asset base. Policymakers and analysts use this data to evaluate the financial health and competitiveness of the country's banking industry.
Methodology
The data is collected and calculated by the World Bank using financial reporting from Sri Lankan banks.
Historical Context
This metric is relevant for understanding the competitiveness and stability of Sri Lanka's financial system.
Key Facts
- Sri Lanka's bank overhead costs averaged 3.2% of total assets in 2020.
- This ratio has declined from a high of 4.1% in 2010, indicating improved efficiency.
- Higher overhead costs can squeeze bank profitability and competitiveness.
FAQs
Q: What does this economic trend measure?
A: This metric measures the ratio of a bank's operating expenses, such as salaries and administrative costs, to its total asset base in Sri Lanka.
Q: Why is this trend relevant for users or analysts?
A: This indicator provides insight into the operational efficiency and competitiveness of Sri Lanka's banking sector, which is important for evaluating the health and stability of the country's financial system.
Q: How is this data collected or calculated?
A: The data is collected and calculated by the World Bank using financial reporting from banks operating in Sri Lanka.
Q: How is this trend used in economic policy?
A: Policymakers and analysts use this metric to assess the financial health and competitiveness of Sri Lanka's banking industry, which can inform policies aimed at promoting a stable and efficient financial sector.
Q: Are there update delays or limitations?
A: The data is published annually by the World Bank, so there may be a lag of up to a year in the most recent figures being available.
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Citation
U.S. Federal Reserve, Bank's Overhead Costs to Total Assets for Sri Lanka (DDEI04LKA156NWDB), retrieved from FRED.