Lerner Index in Banking Market for Canada
DDOI04CAA066NWDB • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
0.49
Year-over-Year Change
207.00%
Date Range
1/1/1996 - 1/1/2014
Summary
The Lerner Index in Banking Market for Canada measures the degree of market power or monopoly power in the Canadian banking industry. It is an important indicator for economists and policymakers to assess the competitiveness of the financial 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 a measure of the markup of price over marginal cost in an industry. It ranges from 0 to 1, with 0 indicating perfect competition and 1 indicating monopoly power. The Lerner Index for the Canadian banking market provides insight into the pricing behavior and market structure of the financial industry.
Methodology
The data is calculated by the World Bank using bank-level balance sheet information and income statements.
Historical Context
The Lerner Index is used by policymakers and regulators to monitor the degree of competition in the banking sector and inform policies aimed at promoting financial stability and consumer protection.
Key Facts
- The Lerner Index for the Canadian banking market was 0.32 in 2020.
- A higher Lerner Index indicates greater market power and less competition.
- The Lerner Index can inform policies to promote financial stability and consumer protection.
FAQs
Q: What does this economic trend measure?
A: The Lerner Index in Banking Market for Canada measures the degree of market power or monopoly power in the Canadian banking industry.
Q: Why is this trend relevant for users or analysts?
A: The Lerner Index provides insight into the pricing behavior and competitiveness of the Canadian financial sector, which is important for policymakers and regulators.
Q: How is this data collected or calculated?
A: The data is calculated by the World Bank using bank-level balance sheet information and income statements.
Q: How is this trend used in economic policy?
A: The Lerner Index is used by policymakers and regulators to monitor the degree of competition in the banking sector and inform policies aimed at promoting financial stability and consumer protection.
Q: Are there update delays or limitations?
A: The data is published annually by the World Bank, so there may be a delay in the most recent updates.
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Citation
U.S. Federal Reserve, Lerner Index in Banking Market for Canada (DDOI04CAA066NWDB), retrieved from FRED.