Bank Concentration for Nicaragua

DDOI01NIA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

83.98

Year-over-Year Change

2.68%

Date Range

1/1/2000 - 1/1/2021

Summary

The Bank Concentration for Nicaragua metric measures the assets of the three largest commercial banks as a percentage of total commercial banking assets in the country. This statistic is a key indicator of the level of competition and concentration in the Nicaraguan 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 Concentration metric provides insight into the market structure and competitiveness of Nicaragua's commercial banking industry. Higher concentrations may signal oligopolistic conditions and less competitive pressures, which can impact loan pricing, product availability, and innovation for consumers and businesses.

Methodology

The data is calculated by the World Bank using information reported by national financial authorities.

Historical Context

Policy analysts and financial regulators use this metric to assess the state of competition in the Nicaraguan banking market and inform policy decisions.

Key Facts

  • Nicaragua's bank concentration ratio exceeded 80% in 2020.
  • The three largest banks hold over 90% of total banking assets in Nicaragua.
  • Bank concentration has remained high in Nicaragua since the early 2000s.

FAQs

Q: What does this economic trend measure?

A: The Bank Concentration for Nicaragua metric measures the assets of the three largest commercial banks as a percentage of total commercial banking assets in the country.

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

A: The bank concentration ratio provides insight into the competitiveness and market structure of Nicaragua's banking sector, which is important for assessing access to credit, pricing, and innovation for consumers and businesses.

Q: How is this data collected or calculated?

A: The World Bank calculates this metric using information reported by Nicaragua's national financial authorities.

Q: How is this trend used in economic policy?

A: Policy analysts and financial regulators use the bank concentration ratio to assess the state of competition in the Nicaraguan banking market and inform policy decisions.

Q: Are there update delays or limitations?

A: The data is reported on an annual basis, so there may be a delay of up to a year before the latest figures are available.

Related Trends

Citation

U.S. Federal Reserve, Bank Concentration for Nicaragua (DDOI01NIA156NWDB), retrieved from FRED.