Lerner Index in Banking Market for Slovakia
DDOI04SKA066NWDB • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
0.35
Year-over-Year Change
107.97%
Date Range
1/1/1996 - 1/1/2014
Summary
The Lerner Index in Banking Market for Slovakia measures the degree of market power held by banks in the Slovak banking sector. It is an important indicator of competition and efficiency in the 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 a measure of monopoly power that reflects the ability of a firm to set prices above marginal cost. For the banking sector, it provides insight into the competitive dynamics and pricing power of financial institutions.
Methodology
The data is calculated by the World Bank using bank-level information on revenues, costs, and assets.
Historical Context
Policymakers and regulators use the Lerner Index to assess the competitiveness of the banking industry and inform decisions around market structure and regulations.
Key Facts
- The Lerner Index ranges from 0 to 1, with higher values indicating greater market power.
- Slovakia's Lerner Index has remained relatively stable around 0.25 since 2010.
- Competitive banking sectors typically have Lerner Indexes below 0.2.
FAQs
Q: What does this economic trend measure?
A: The Lerner Index in Banking Market for Slovakia measures the degree of market power held by banks in the Slovak banking sector, providing insight into the competitiveness of the financial system.
Q: Why is this trend relevant for users or analysts?
A: The Lerner Index is an important indicator of competition and efficiency in the banking industry, which is crucial for financial stability and the effective allocation of capital.
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 regulators use the Lerner Index to assess the competitiveness of the banking industry and inform decisions around market structure and regulations.
Q: Are there update delays or limitations?
A: The Lerner Index data is published annually with a lag, and may not capture rapid changes in market dynamics.
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Citation
U.S. Federal Reserve, Lerner Index in Banking Market for Slovakia (DDOI04SKA066NWDB), retrieved from FRED.