Lerner Index in Banking Market for Colombia
DDOI04COA066NWDB • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
0.48
Year-over-Year Change
173.11%
Date Range
1/1/1996 - 1/1/2014
Summary
The Lerner Index in Banking Market for Colombia measures the degree of market power in the Colombian banking sector. It provides insights into the competitiveness and efficiency of the country's 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 indicator that quantifies the market power of firms. In the context of the banking market, it shows the ability of banks to set prices above their marginal cost. This metric is used to assess the level of competition in the financial sector and identify potential areas for policy intervention.
Methodology
The data is calculated by the World Bank using bank-level data from financial statements.
Historical Context
The Lerner Index is a key input for policymakers in evaluating the health and stability of the Colombian banking system.
Key Facts
- The Lerner Index ranges from 0 to 1, with 0 indicating perfect competition and 1 representing monopoly power.
- Higher Lerner Index values suggest less competitive banking markets.
- The Lerner Index is inversely related to the price-cost margin in the banking sector.
FAQs
Q: What does this economic trend measure?
A: The Lerner Index in Banking Market for Colombia measures the degree of market power in the Colombian banking sector. It quantifies the ability of banks to set prices above their marginal cost.
Q: Why is this trend relevant for users or analysts?
A: The Lerner Index provides insights into the competitiveness and efficiency of the Colombian financial system, which is crucial for policymakers in evaluating the health and stability of the banking sector.
Q: How is this data collected or calculated?
A: The data is calculated by the World Bank using bank-level financial statement data.
Q: How is this trend used in economic policy?
A: The Lerner Index is a key input for policymakers in Colombia when evaluating the level of competition and potential areas for intervention in the banking market.
Q: Are there update delays or limitations?
A: The data is published annually by the World Bank, and there may be some delays in reporting the latest values.
Related Trends
Use of Financial Services, Assets: Outstanding Loans to Households at Commercial Banks for Colombia
COLFCSODCHXDC
Business Tendency Surveys (Manufacturing): Production: Tendency: National Indicator for Colombia
COLBSPRTE02STM
Gross National Income for Colombia
MKTGNICOA646NWDB
External Loans and Deposits of Reporting Banks in Relation to the Banking Sector for Colombia
DDOI10COA156NWDB
Infra-Annual Labor Statistics: Persons Outside the Labor Force Total: 15 Years or over for Colombia
COLLFINTTTTSTM
Amount Outstanding of Domestic Debt Securities for All Issuers, Residence of Issuer in Colombia
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Citation
U.S. Federal Reserve, Lerner Index in Banking Market for Colombia (DDOI04COA066NWDB), retrieved from FRED.