Bank's Cost to Income Ratio for Ecuador
DDEI07ECA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
67.87
Year-over-Year Change
-6.86%
Date Range
1/1/2000 - 1/1/2021
Summary
The Bank's Cost to Income Ratio for Ecuador measures the operating costs of Ecuadorian banks as a percentage of their total income. This metric is crucial for assessing the efficiency and profitability of the Ecuadorian 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 Cost to Income Ratio represents the relationship between a bank's operating expenses and its total revenue. A lower ratio indicates greater operational efficiency and profitability, as the bank is able to generate more income relative to its costs.
Methodology
The data is collected by the World Bank through surveys and reporting from national banking authorities.
Historical Context
Policymakers and financial analysts use this metric to monitor the health and competitiveness of the Ecuadorian banking industry.
Key Facts
- The ratio ranges from 0 to 1, with lower values indicating greater efficiency.
- Ecuador's ratio has fluctuated between 0.50 and 0.75 over the past decade.
- A high ratio may signal the need for operational improvements or regulatory reforms.
FAQs
Q: What does this economic trend measure?
A: The Bank's Cost to Income Ratio measures the operating costs of Ecuadorian banks as a percentage of their total income, providing insight into the efficiency and profitability of the banking sector.
Q: Why is this trend relevant for users or analysts?
A: This metric is crucial for assessing the health and competitiveness of the Ecuadorian banking industry, and is used by policymakers and financial analysts to monitor the financial sector's performance.
Q: How is this data collected or calculated?
A: The data is collected by the World Bank through surveys and reporting from national banking authorities in Ecuador.
Q: How is this trend used in economic policy?
A: Policymakers and regulators use this metric to identify areas for operational improvements or regulatory reforms in the Ecuadorian banking sector, with the goal of enhancing efficiency and profitability.
Q: Are there update delays or limitations?
A: The data is published annually by the World Bank, with a typical delay of 6-12 months. The metric may not capture all aspects of banking efficiency, as it does not account for factors like asset quality or risk management.
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Citation
U.S. Federal Reserve, Bank's Cost to Income Ratio for Ecuador (DDEI07ECA156NWDB), retrieved from FRED.