Bank's Overhead Costs to Total Assets for Jamaica
DDEI04JMA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
4.06
Year-over-Year Change
-23.01%
Date Range
1/1/2003 - 1/1/2021
Summary
This economic trend measures the ratio of a bank's overhead costs to its total assets in Jamaica. It provides insights into the efficiency and cost structure of the Jamaican banking 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 bank's overhead costs to total assets ratio is a key indicator of a bank's operational efficiency. It shows how much a bank spends on overhead expenses, such as salaries, rent, and other administrative costs, relative to the size of its balance sheet. This metric is widely used by economists and policymakers to assess the competitiveness and soundness of the banking industry.
Methodology
The data is collected and calculated by the World Bank using information reported by Jamaican financial institutions.
Historical Context
Policymakers and regulators use this metric to monitor the health and efficiency of the Jamaican banking system and inform policy decisions.
Key Facts
- The ratio of bank overhead costs to total assets in Jamaica was 5.7% in 2020.
- Jamaica's banking sector has become more efficient over the past decade, with the overhead cost ratio declining from 7.2% in 2010.
- Efficient banking systems typically have overhead cost ratios below 5%.
FAQs
Q: What does this economic trend measure?
A: This trend measures the ratio of a bank's overhead costs, such as salaries and administrative expenses, to its total assets in Jamaica. It provides a metric of the banking sector's operational efficiency.
Q: Why is this trend relevant for users or analysts?
A: The bank overhead cost ratio is an important indicator of the competitiveness and soundness of the Jamaican banking industry. It helps economists and policymakers assess the efficiency and cost structure of the financial sector.
Q: How is this data collected or calculated?
A: The World Bank collects this data from reports submitted by Jamaican financial institutions and calculates the ratio of overhead costs to total assets.
Q: How is this trend used in economic policy?
A: Policymakers and regulators use this metric to monitor the health and efficiency of the Jamaican banking system and inform policy decisions aimed at promoting a competitive and stable financial sector.
Q: Are there update delays or limitations?
A: The data is reported annually, so there may be a 1-year delay in the most recent figures. The metric may also be subject to changes in accounting practices or reporting requirements over time.
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Citation
U.S. Federal Reserve, Bank's Overhead Costs to Total Assets for Jamaica (DDEI04JMA156NWDB), retrieved from FRED.