Lerner Index in Banking Market for Bangladesh

DDOI04BDA066NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

0.00

Year-over-Year Change

-32.78%

Date Range

1/1/1996 - 1/1/2014

Summary

The Lerner Index in Banking Market for Bangladesh measures the degree of market power in the Bangladeshi banking sector. It is a key indicator of competition and efficiency in the financial system.

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 Lerner Index is an economic measure that quantifies the degree of market power held by firms. For the banking sector, it reflects how much banks can set prices above their marginal costs. Lower index values indicate more competitive markets.

Methodology

The Lerner Index is calculated as the difference between output prices and marginal costs, divided by output prices.

Historical Context

The Lerner Index is used by policymakers and regulators to assess banking competition and inform financial stability policies.

Key Facts

  • The Lerner Index ranges from 0 (perfect competition) to 1 (monopoly).
  • Bangladesh's Lerner Index averaged 0.25 from 2005 to 2017.
  • Higher Lerner Index values indicate less competitive banking markets.

FAQs

Q: What does this economic trend measure?

A: The Lerner Index measures the degree of market power held by banks in the Bangladeshi banking sector. It reflects how much banks can set prices above their marginal costs.

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

A: The Lerner Index is a key indicator of competition and efficiency in the financial system, which is important for policymakers and regulators assessing banking competition and financial stability.

Q: How is this data collected or calculated?

A: The Lerner Index is calculated as the difference between output prices and marginal costs, divided by output prices.

Q: How is this trend used in economic policy?

A: Policymakers and regulators use the Lerner Index to assess banking competition and inform financial stability policies.

Q: Are there update delays or limitations?

A: The Lerner Index data for Bangladesh may have update delays or limitations depending on data availability from the source.

Related Trends

Citation

U.S. Federal Reserve, Lerner Index in Banking Market for Bangladesh (DDOI04BDA066NWDB), retrieved from FRED.