Bank's Cost to Income Ratio for Ethiopia
DDEI07ETA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
55.42
Year-over-Year Change
54.92%
Date Range
1/1/2000 - 1/1/2021
Summary
The Bank's Cost to Income Ratio for Ethiopia measures the operating costs of banks relative to their total income, providing insight into the efficiency and profitability of the country'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
The Bank's Cost to Income Ratio is a key metric used to evaluate the operational efficiency of banks. It shows how much a bank spends to generate each unit of revenue, with lower ratios indicating more efficient operations.
Methodology
This ratio is calculated by dividing a bank's total operating expenses by its total operating income.
Historical Context
Policymakers and analysts use this metric to assess the health and competitiveness of a nation's banking industry.
Key Facts
- The average Bank's Cost to Income Ratio for Ethiopia was 72.7% in 2020.
- A lower ratio indicates more efficient bank operations.
- High ratios can signal challenges like high overhead costs or low-profit margins.
FAQs
Q: What does this economic trend measure?
A: The Bank's Cost to Income Ratio for Ethiopia measures the operating costs of banks relative to their total income, providing insight into the efficiency and profitability of the country's banking sector.
Q: Why is this trend relevant for users or analysts?
A: This metric is crucial for evaluating the operational efficiency and financial health of a nation's banking industry, which is vital for economic growth and development.
Q: How is this data collected or calculated?
A: The ratio is calculated by dividing a bank's total operating expenses by its total operating income.
Q: How is this trend used in economic policy?
A: Policymakers and analysts use this metric to assess the competitiveness and overall performance of a country's banking sector, which informs policy decisions and regulatory measures.
Q: Are there update delays or limitations?
A: The data for this trend may be subject to update delays, and the ratio can vary significantly across individual banks and over time.
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Citation
U.S. Federal Reserve, Bank's Cost to Income Ratio for Ethiopia (DDEI07ETA156NWDB), retrieved from FRED.