Lerner Index in Banking Market for Brazil
DDOI04BRA066NWDB • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
0.21
Year-over-Year Change
-12.68%
Date Range
1/1/1996 - 1/1/2014
Summary
The Lerner Index in Banking Market for Brazil measures the degree of market power and competitiveness in the Brazilian 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 Lerner Index is an economic indicator that quantifies the market power of firms by calculating the difference between price and marginal cost. For the banking sector, it provides insights into the level of competition and pricing behavior of financial institutions.
Methodology
The data is calculated by the World Bank using bank-level information on total assets, total revenue, and total costs.
Historical Context
The Lerner Index is used by policymakers and researchers to assess the overall health and efficiency of the banking industry.
Key Facts
- The Lerner Index ranges from 0 to 1, with 0 indicating perfect competition and 1 indicating monopoly power.
- A higher Lerner Index value suggests greater market power and less competition in the banking sector.
- The Lerner Index for Brazil's banking market has fluctuated between 0.15 and 0.25 over the past decade.
FAQs
Q: What does the Lerner Index in Banking Market for Brazil measure?
A: The Lerner Index measures the degree of market power and competitiveness in the Brazilian banking sector.
Q: Why is the Lerner Index relevant for users or analysts?
A: The Lerner Index provides insights into the level of competition and pricing behavior of financial institutions, which is crucial for policymakers and researchers assessing the health and efficiency of the banking industry.
Q: How is the Lerner Index data collected or calculated?
A: The data is calculated by the World Bank using bank-level information on total assets, total revenue, and total costs.
Q: How is the Lerner Index used in economic policy?
A: The Lerner Index is used by policymakers and researchers to assess the overall competitiveness and efficiency of the banking industry, which informs financial regulations and policies.
Q: Are there any update delays or limitations with the Lerner Index data?
A: The Lerner Index data may have some delays in updates, and it is limited to the information available from the banking institutions included in the calculations.
Related Trends
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BRAFCNMNUM
Small Firms with a Bank Loan or Line of Credit to Total Small Firms for Brazil
DDAI04BRA156NWDB
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PRMITO01BRQ661N
Balance of Payments: Services: Expenditure for Brazil
BRAB6DBSE01CXCUSAQ
National Accounts: GDP by Expenditure: Current Prices: Exports of Goods and Services for Brazil
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Financial Account (Excludes Exceptional Financing and Use of Fund Resources), Net for Brazil
FAEEFNBRA052N
Citation
U.S. Federal Reserve, Lerner Index in Banking Market for Brazil (DDOI04BRA066NWDB), retrieved from FRED.