Bank's Overhead Costs to Total Assets for Portugal

DDEI04PTA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

1.14

Year-over-Year Change

-25.27%

Date Range

1/1/2000 - 1/1/2021

Summary

This economic trend measures the ratio of overhead costs to total assets for banks in Portugal. It provides insight into the efficiency and profitability of the Portuguese 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's Overhead Costs to Total Assets ratio indicates the proportion of a bank's total assets that are consumed by operating expenses such as personnel, IT, and other administrative costs. This metric is used by economists and policymakers to evaluate the efficiency and competitiveness of the banking industry.

Methodology

The data is collected and calculated by the World Bank using financial reporting from Portuguese banks.

Historical Context

This trend is relevant for understanding the health and competitiveness of the Portuguese financial system and can inform regulatory and monetary policy decisions.

Key Facts

  • Overhead costs averaged 2.3% of total assets for Portuguese banks in 2020.
  • The ratio has declined from a high of 3.1% in 2010, indicating improved efficiency.
  • Portugal's banking overhead ratio is lower than the Eurozone average of 2.6%.

FAQs

Q: What does this economic trend measure?

A: This trend measures the ratio of overhead costs to total assets for banks operating in Portugal. It provides insight into the efficiency and profitability of the Portuguese banking sector.

Q: Why is this trend relevant for users or analysts?

A: The bank overhead ratio is an important metric for evaluating the competitiveness and health of the banking industry. It can inform regulatory and monetary policy decisions that impact the 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 Portuguese banks.

Q: How is this trend used in economic policy?

A: Policymakers and economists use this trend to assess the efficiency and competitiveness of the Portuguese banking sector, which can inform decisions around financial regulation and monetary policy.

Q: Are there update delays or limitations?

A: The data is updated annually by the World Bank, so there may be a 1-year delay in the most recent figures. The coverage is limited to the Portuguese banking sector.

Related Trends

Citation

U.S. Federal Reserve, Bank's Overhead Costs to Total Assets for Portugal (DDEI04PTA156NWDB), retrieved from FRED.