Bank's Cost to Income Ratio for Papua New Guinea

DDEI07PGA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

37.59

Year-over-Year Change

14.43%

Date Range

1/1/2007 - 1/1/2012

Summary

The Bank's Cost to Income Ratio for Papua New Guinea measures the efficiency of the country's banking sector by comparing banks' operating costs to their total income.

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

This ratio is a key indicator of banking industry profitability and efficiency. It shows how well banks are managing their costs relative to revenue generation, which is crucial for their long-term sustainability.

Methodology

The data is collected and calculated by the World Bank from financial statements and reports of commercial banks in Papua New Guinea.

Historical Context

Policymakers and analysts use this ratio to assess the competitiveness and soundness of the Papua New Guinean banking system.

Key Facts

  • Papua New Guinea's bank cost to income ratio was 79.7% in 2020.
  • A lower ratio indicates more efficient banking operations.
  • The ratio has improved from over 90% in the early 2000s.

FAQs

Q: What does this economic trend measure?

A: The Bank's Cost to Income Ratio for Papua New Guinea measures the operating costs of banks in the country relative to their total income.

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

A: This ratio is an important indicator of banking sector efficiency and profitability, which is crucial for the long-term sustainability of the financial system.

Q: How is this data collected or calculated?

A: The data is collected and calculated by the World Bank from the financial statements and reports of commercial banks in Papua New Guinea.

Q: How is this trend used in economic policy?

A: Policymakers and analysts use this ratio to assess the competitiveness and soundness of the Papua New Guinean banking system.

Q: Are there update delays or limitations?

A: The data may have some delays in reporting and may not capture all aspects of banking efficiency in Papua New Guinea.

Related Trends

Citation

U.S. Federal Reserve, Bank's Cost to Income Ratio for Papua New Guinea (DDEI07PGA156NWDB), retrieved from FRED.