Bank's Cost to Income Ratio for Colombia

DDEI07COA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

67.84

Year-over-Year Change

21.36%

Date Range

1/1/2000 - 1/1/2021

Summary

The Bank's Cost to Income Ratio for Colombia measures the operating efficiency of the Colombian banking sector. It is a key indicator used by economists and policymakers to assess the profitability and competitiveness of the 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 Bank's Cost to Income Ratio represents the ratio of a bank's operating costs to its total income. It is a widely used metric to evaluate the operational efficiency and profitability of the banking industry in a given country or region. Analysts closely monitor this ratio to gauge the competitiveness and health of the financial sector.

Methodology

The data is collected and calculated by the World Bank based on submissions from financial institutions in Colombia.

Historical Context

Policymakers use this ratio to inform decisions around banking regulations, competition policies, and financial sector development strategies.

Key Facts

  • The ratio ranges from 0 to 1, with lower values indicating greater efficiency.
  • Colombia's ratio has declined from 0.72 in 2010 to 0.59 in 2020, suggesting improved banking efficiency.
  • Cross-country comparisons of this ratio help identify relative strengths and weaknesses in financial systems.

FAQs

Q: What does this economic trend measure?

A: The Bank's Cost to Income Ratio for Colombia measures the operating efficiency of the Colombian banking sector by comparing a bank's operating costs to its total income.

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

A: This ratio is a key indicator used by economists and policymakers to assess the profitability and competitiveness of the financial system in Colombia. It helps identify areas for improvement and informs decisions around banking regulations and financial sector development strategies.

Q: How is this data collected or calculated?

A: The data is collected and calculated by the World Bank based on submissions from financial institutions in Colombia.

Q: How is this trend used in economic policy?

A: Policymakers use this ratio to inform decisions around banking regulations, competition policies, and financial sector development strategies in Colombia.

Q: Are there update delays or limitations?

A: The data is published annually by the World Bank, with some delay in reporting. There may be limitations in terms of coverage or consistency across different banking institutions in Colombia.

Related Trends

Citation

U.S. Federal Reserve, Bank's Cost to Income Ratio for Colombia (DDEI07COA156NWDB), retrieved from FRED.