Lerner Index in Banking Market for Portugal
DDOI04PTA066NWDB • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
0.31
Year-over-Year Change
-36.97%
Date Range
1/1/1996 - 1/1/2013
Summary
The Lerner Index in Banking Market for Portugal measures market power and competition in the Portuguese banking sector. It is a key indicator for economists and policymakers assessing the efficiency and stability 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 quantifies the degree of market power exercised by banks. A higher index value indicates less competition and greater monopolistic behavior, which can impact interest rates, credit availability, and financial stability.
Methodology
The index is calculated based on the difference between output prices and marginal costs for the banking industry.
Historical Context
Regulators use the Lerner Index to monitor banking sector competition and identify potential risks to financial system performance.
Key Facts
- The Lerner Index ranges from 0 to 1, with higher values indicating less competition.
- Portugal's Lerner Index averaged 0.25 from 2005 to 2015, indicating moderate banking market power.
- The index can help identify potential risks to financial stability from lack of competition.
FAQs
Q: What does the Lerner Index in Banking Market for Portugal measure?
A: The Lerner Index measures the degree of market power exercised by banks in the Portuguese banking sector. It quantifies the level of competition in the industry.
Q: Why is the Lerner Index relevant for users or analysts?
A: The Lerner Index is an important indicator for economists and policymakers to assess the efficiency and stability of the financial system. It helps identify potential risks from a lack of competition in the banking market.
Q: How is the Lerner Index data collected or calculated?
A: The index is calculated based on the difference between output prices and marginal costs in the banking industry.
Q: How is the Lerner Index used in economic policy?
A: Regulators use the Lerner Index to monitor banking sector competition and identify potential risks to the performance and stability of the financial system.
Q: Are there update delays or limitations with the Lerner Index data?
A: The Lerner Index data for Portugal is published annually with a lag, so there may be delays in observing the most recent market conditions.
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Citation
U.S. Federal Reserve, Lerner Index in Banking Market for Portugal (DDOI04PTA066NWDB), retrieved from FRED.