Bank Concentration for El Salvador

DDOI01SVA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

74.45

Year-over-Year Change

16.49%

Date Range

1/1/2000 - 1/1/2021

Summary

The Bank Concentration for El Salvador measures the degree of market dominance by the largest banks in the country's financial system. This indicator is important for economists and policymakers to assess the competitiveness and stability of the 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 Concentration metric tracks the assets of the three largest commercial banks as a percentage of total commercial banking assets in El Salvador. It provides insight into the level of market consolidation and the potential for anticompetitive practices in the banking industry.

Methodology

The data is collected by the World Bank from national regulatory and statistical agencies.

Historical Context

This indicator is used by analysts and policymakers to evaluate the health and structure of El Salvador's financial system.

Key Facts

  • El Salvador's bank concentration was 51.5% in 2020.
  • Bank concentration has remained relatively stable in El Salvador over the past decade.
  • High bank concentration can limit competition and access to credit in the financial system.

FAQs

Q: What does this economic trend measure?

A: The Bank Concentration for El Salvador measures the degree of market dominance by the largest banks in the country's commercial banking sector.

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

A: This indicator provides insight into the competitiveness and potential stability risks in El Salvador's banking industry, which is important for investors, policymakers, and other stakeholders.

Q: How is this data collected or calculated?

A: The data is collected by the World Bank from national regulatory and statistical agencies in El Salvador.

Q: How is this trend used in economic policy?

A: Policymakers and analysts use the Bank Concentration metric to assess the health and structure of El Salvador's financial system, which informs decisions around banking regulations and competition policy.

Q: Are there update delays or limitations?

A: The Bank Concentration data for El Salvador is updated annually by the World Bank, with a potential delay of 1-2 years.

Related Trends

Citation

U.S. Federal Reserve, Bank Concentration for El Salvador (DDOI01SVA156NWDB), retrieved from FRED.