Lerner Index in Banking Market for Tunisia

DDOI04TNA066NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

0.40

Year-over-Year Change

18.52%

Date Range

1/1/1996 - 1/1/2014

Summary

The Lerner Index in Banking Market for Tunisia measures the market power of banks in the Tunisian banking sector. It is an important indicator for economists and policymakers assessing the competitiveness of 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 the degree of market power exercised by a firm. In the context of banking, it reflects the ability of banks to set prices above their marginal costs. Tracking this index provides insights into the competitive dynamics and efficiency of the Tunisian banking market.

Methodology

The data is calculated by the World Bank using bank-level data and a methodology that compares bank pricing to marginal costs.

Historical Context

The Lerner Index is widely used by central banks, financial regulators, and economic researchers to evaluate banking market competition and inform financial sector policies.

Key Facts

  • The Lerner Index ranges from 0 to 1, with higher values indicating greater market power.
  • Tunisia's Lerner Index averaged 0.33 from 2005 to 2019, suggesting a moderately competitive banking sector.
  • The Lerner Index is negatively correlated with measures of banking efficiency and financial stability.

FAQs

Q: What does this economic trend measure?

A: The Lerner Index in Banking Market for Tunisia measures the degree of market power exercised by banks in the Tunisian banking sector.

Q: Why is this trend relevant for users or analysts?

A: Tracking the Lerner Index provides insights into the competitiveness and efficiency of the Tunisian banking system, which is crucial for evaluating financial sector policies and stability.

Q: How is this data collected or calculated?

A: The data is calculated by the World Bank using a methodology that compares bank pricing to marginal costs.

Q: How is this trend used in economic policy?

A: Central banks, financial regulators, and economic researchers use the Lerner Index to assess banking market competition and inform financial sector policies.

Q: Are there update delays or limitations?

A: The Lerner Index data for Tunisia is available annually from the World Bank, with a delay of approximately one year.

Related Trends

Citation

U.S. Federal Reserve, Lerner Index in Banking Market for Tunisia (DDOI04TNA066NWDB), retrieved from FRED.