Lerner Index in Banking Market for Nigeria
DDOI04NGA066NWDB • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
0.23
Year-over-Year Change
-20.62%
Date Range
1/1/1996 - 1/1/2014
Summary
The Lerner Index in Banking Market for Nigeria measures the degree of market power in the Nigerian banking sector. It is an important indicator for assessing 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 measure that quantifies a firm's or industry's market power by calculating the difference between the price charged and the marginal cost. A higher Lerner Index indicates greater market power and less competition in the banking sector.
Methodology
The data is calculated by the World Bank based on bank-level balance sheet information.
Historical Context
The Lerner Index is used by policymakers and analysts to evaluate the effectiveness of financial regulations and reforms in promoting competition.
Key Facts
- The Lerner Index ranges from 0 to 1, with 0 indicating perfect competition.
- Nigeria's Lerner Index in banking has declined from 0.42 in 2005 to 0.34 in 2019, suggesting increased competition.
- A higher Lerner Index is associated with higher banking sector profits and interest rate spreads.
FAQs
Q: What does the Lerner Index in Banking Market for Nigeria measure?
A: The Lerner Index measures the degree of market power in the Nigerian banking sector, with a higher value indicating less competition.
Q: Why is the Lerner Index relevant for users or analysts?
A: The Lerner Index is an important indicator for assessing the competitiveness and efficiency of Nigeria's financial system, which is relevant for policymakers and analysts evaluating the impact of financial regulations and reforms.
Q: How is the Lerner Index data collected or calculated?
A: The data is calculated by the World Bank based on bank-level balance sheet information.
Q: How is the Lerner Index used in economic policy?
A: The Lerner Index is used by policymakers and analysts to evaluate the effectiveness of financial regulations and reforms in promoting competition in the Nigerian banking sector.
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 can be limited by the availability of bank-level financial information in Nigeria.
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Citation
U.S. Federal Reserve, Lerner Index in Banking Market for Nigeria (DDOI04NGA066NWDB), retrieved from FRED.