Bank's Cost to Income Ratio for Panama

DDEI07PAA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

53.65

Year-over-Year Change

-7.80%

Date Range

1/1/2000 - 1/1/2021

Summary

The Bank's Cost to Income Ratio for Panama measures the ratio of a bank's operating costs to its total income, providing insight into the efficiency and profitability of Panama'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 for Panama is an important metric used by economists and policymakers to assess the operational efficiency and financial health of Panama's banking industry. It indicates how effectively banks in Panama are managing their costs relative to the revenue they generate.

Methodology

The data is collected and calculated by the World Bank based on reports from Panamanian financial institutions.

Historical Context

This ratio is widely monitored by central banks, regulators, and investors to gauge the competitiveness and resilience of Panama's banking system.

Key Facts

  • The ratio ranges from 0 to 1, with lower values indicating greater banking efficiency.
  • Panama's ratio has averaged around 0.55 over the past decade.
  • Maintaining a low cost-to-income ratio is crucial for banks to remain profitable and competitive.

FAQs

Q: What does this economic trend measure?

A: The Bank's Cost to Income Ratio for Panama measures the proportion of a bank's operating costs compared to its total revenue or income. It is a key indicator of banking efficiency and profitability.

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

A: This ratio is widely tracked by economists, policymakers, and investors to assess the financial health and competitiveness of Panama's banking sector. It provides insights into how effectively banks are managing their costs and generating revenue.

Q: How is this data collected or calculated?

A: The data is collected and calculated by the World Bank based on financial reporting from banks operating in Panama.

Q: How is this trend used in economic policy?

A: Central banks, financial regulators, and policymakers monitor the Bank's Cost to Income Ratio for Panama to gauge the efficiency and stability of the country's banking system, which is crucial for supporting economic growth and financial sector development.

Q: Are there update delays or limitations?

A: The Bank's Cost to Income Ratio for Panama data is published annually by the World Bank with a delay of approximately one year. Users should be aware of this when interpreting the most recent figures.

Related Trends

Citation

U.S. Federal Reserve, Bank's Cost to Income Ratio for Panama (DDEI07PAA156NWDB), retrieved from FRED.