Boone Indicator in Banking Market for Panama

DDOI05PAA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

-0.12

Year-over-Year Change

-3.50%

Date Range

1/1/1999 - 1/1/2014

Summary

The Boone Indicator measures the competitive conditions in the banking market of Panama. It is an important metric for economists and policymakers to assess the level of competition and efficiency in the financial sector.

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 is a measure of the degree of competition in the banking industry. It captures how bank profits respond to changes in marginal costs, with a lower indicator value suggesting a more competitive market environment.

Methodology

The indicator is calculated using bank-level data on profits and costs.

Historical Context

Policymakers and regulators use the Boone Indicator to evaluate the competitiveness of the banking sector and inform policies aimed at promoting financial stability and efficiency.

Key Facts

  • The Boone Indicator ranges from -1 to 0, with lower values indicating more competition.
  • Panama's Boone Indicator has trended downward since the early 2000s, suggesting increasing competition in its banking market.
  • The Boone Indicator is used alongside other measures like the Herfindahl-Hirschman Index to assess banking sector competitiveness.

FAQs

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

A: The Boone Indicator measures the degree of competition in the banking industry of Panama. It captures how bank profits respond to changes in marginal costs.

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

A: The Boone Indicator is an important metric for economists and policymakers to assess the level of competition and efficiency in the Panamanian financial sector, which informs policies aimed at promoting financial stability and efficiency.

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

A: The Boone Indicator is calculated using bank-level data on profits and costs.

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

A: Policymakers and regulators use the Boone Indicator to evaluate the competitiveness of the Panamanian banking sector and inform policies aimed at promoting financial stability and efficiency.

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

A: The Boone Indicator data may be subject to update delays and limitations inherent in the underlying bank-level data used to calculate the metric.

Related Trends

Citation

U.S. Federal Reserve, Boone Indicator in Banking Market for Panama (DDOI05PAA156NWDB), retrieved from FRED.