Lerner Index in Banking Market for Switzerland

DDOI04CHA066NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

0.10

Year-over-Year Change

-32.37%

Date Range

1/1/1996 - 1/1/2014

Summary

The Lerner Index in Banking Market for Switzerland measures the degree of market power exercised by banks in the Swiss banking industry. It provides insights into the competitiveness and efficiency of the Swiss 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 measure that quantifies the market power of firms. For the banking sector, it indicates the ability of banks to set prices above their marginal cost. Higher index values suggest less competitive banking markets.

Methodology

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

Historical Context

The Lerner Index helps policymakers and regulators assess the competitive dynamics of the Swiss banking industry.

Key Facts

  • The Lerner Index ranges from 0 to 1, with 0 indicating perfect competition.
  • Higher Lerner Index values suggest less competitive banking markets.
  • Switzerland has one of the most concentrated banking sectors among advanced economies.

FAQs

Q: What does this economic trend measure?

A: The Lerner Index in Banking Market for Switzerland measures the degree of market power exercised by banks in the Swiss banking industry.

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

A: The Lerner Index provides insights into the competitiveness and efficiency of the Swiss banking sector, which is important for policymakers, regulators, and financial analysts.

Q: How is this data collected or calculated?

A: The 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: The Lerner Index helps policymakers and regulators assess the competitive dynamics of the Swiss banking industry and inform policies aimed at promoting a healthy and efficient financial sector.

Q: Are there update delays or limitations?

A: The Lerner Index data may be subject to update delays or limited availability, as it relies on complex calculations based on banking industry data.

Related Trends

Citation

U.S. Federal Reserve, Lerner Index in Banking Market for Switzerland (DDOI04CHA066NWDB), retrieved from FRED.