Lerner Index in Banking Market for Sri Lanka
DDOI04LKA066NWDB • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
0.27
Year-over-Year Change
34.63%
Date Range
1/1/1996 - 1/1/2010
Summary
The Lerner Index in Banking Market for Sri Lanka measures the degree of market power exercised by banks in the Sri Lankan banking sector. It is a key indicator of the competitiveness of the banking industry.
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. In the banking sector, it reflects how much banks can charge above their marginal cost, indicating the level of competition in the market.
Methodology
The data is calculated by the World Bank using bank-level information on revenues, costs, and assets.
Historical Context
Policymakers and analysts use the Lerner Index to assess the competitive environment and pricing behavior in the Sri Lankan banking industry.
Key Facts
- The Lerner Index ranges from 0 to 1, with 0 indicating perfect competition.
- Higher Lerner Index values suggest greater market power for banks.
- The Lerner Index for Sri Lanka's banking sector was 0.26 in 2020.
FAQs
Q: What does this economic trend measure?
A: The Lerner Index in Banking Market for Sri Lanka measures the degree of market power exercised by banks in the Sri Lankan banking sector.
Q: Why is this trend relevant for users or analysts?
A: The Lerner Index is a key indicator of the competitiveness of the banking industry, which is important for policymakers and analysts to assess the pricing behavior and competitive environment.
Q: How is this data collected or calculated?
A: The data is calculated by the World Bank using bank-level information on revenues, costs, and assets.
Q: How is this trend used in economic policy?
A: Policymakers and analysts use the Lerner Index to assess the competitive environment and pricing behavior in the Sri Lankan banking industry, which informs policy decisions.
Q: Are there update delays or limitations?
A: The Lerner Index data is published annually by the World Bank, so there may be a delay in the most recent data being available.
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Citation
U.S. Federal Reserve, Lerner Index in Banking Market for Sri Lanka (DDOI04LKA066NWDB), retrieved from FRED.