Boone Indicator in Banking Market for Luxembourg

DDOI05LUA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

-50.06

Year-over-Year Change

-82.20%

Date Range

1/1/1999 - 1/1/2014

Summary

The Boone Indicator in Banking Market for Luxembourg measures the degree of competition in the country's banking sector. It is an important metric for policymakers and analysts to assess the efficiency and stability 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 Boone Indicator quantifies the relationship between banks' profits and their market shares, with a lower indicator value suggesting more intense competition. This metric provides insights into the competitiveness and contestability of the banking market.

Methodology

The data is calculated by the World Bank using a regression-based approach that compares bank profits to market shares.

Historical Context

The Boone Indicator is widely used by central banks and financial regulators to evaluate the effectiveness of competition policies and monitor systemic risks in the banking sector.

Key Facts

  • The Boone Indicator ranges from -1 to 0, with lower values indicating more intense competition.
  • Luxembourg's Boone Indicator has remained relatively stable over the past decade, suggesting a moderately competitive banking market.
  • The Boone Indicator is a key input for policymakers when designing regulations to promote financial stability and consumer protection.

FAQs

Q: What does the Boone Indicator in Banking Market for Luxembourg measure?

A: The Boone Indicator measures the degree of competition in the Luxembourg banking sector, with lower values indicating more intense competition.

Q: Why is the Boone Indicator relevant for users or analysts?

A: The Boone Indicator provides insights into the competitiveness and efficiency of the banking market, which is crucial for policymakers and financial analysts to assess systemic risks and the effectiveness of competition policies.

Q: How is the Boone Indicator data collected or calculated?

A: The data is calculated by the World Bank using a regression-based approach that compares bank profits to market shares.

Q: How is the Boone Indicator used in economic policy?

A: Central banks and financial regulators use the Boone Indicator to evaluate the effectiveness of competition policies and monitor systemic risks in the banking sector.

Q: Are there any update delays or limitations with the Boone Indicator data?

A: The Boone Indicator data is subject to the availability and timeliness of bank-level information reported to the World Bank, which may result in occasional delays or data limitations.

Related Trends

Citation

U.S. Federal Reserve, Boone Indicator in Banking Market for Luxembourg (DDOI05LUA156NWDB), retrieved from FRED.