Bank Concentration for Ecuador

DDOI01ECA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

55.51

Year-over-Year Change

2.21%

Date Range

1/1/2000 - 1/1/2021

Summary

The Bank Concentration for Ecuador measures the degree of market share concentration in the Ecuadorian banking sector. This indicator is important for policymakers to assess financial stability and competition.

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 Concentration metric represents the share of total banking sector assets held by the three largest banks in Ecuador. It provides insight into the level of market concentration and can signal risks from lack of competition.

Methodology

The data is calculated by the World Bank using total assets reported by individual banks.

Historical Context

Regulators use this metric to monitor financial system risks and guide policies around bank mergers and acquisitions.

Key Facts

  • Ecuador's bank concentration was 74.3% in 2020.
  • Higher bank concentration can reduce competition and increase systemic risk.
  • The World Bank has tracked this metric for Ecuador since 1997.

FAQs

Q: What does this economic trend measure?

A: The Bank Concentration for Ecuador metric measures the share of total banking assets held by the three largest banks in the country.

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

A: This indicator provides insight into the level of competition and potential risks in the Ecuadorian banking sector, which is relevant for policymakers, regulators, and market analysts.

Q: How is this data collected or calculated?

A: The data is calculated by the World Bank using total asset values reported by individual banks in Ecuador.

Q: How is this trend used in economic policy?

A: Regulators and policymakers use this metric to monitor financial system stability and inform decisions around bank mergers, acquisitions, and other policies affecting market competition.

Q: Are there update delays or limitations?

A: The World Bank publishes this data with an annual update schedule, so there may be a 1-year lag in the most recent information.

Related Trends

Citation

U.S. Federal Reserve, Bank Concentration for Ecuador (DDOI01ECA156NWDB), retrieved from FRED.