Lerner Index in Banking Market for United Arab Emirates

DDOI04AEA066NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

0.59

Year-over-Year Change

27.08%

Date Range

1/1/1996 - 1/1/2014

Summary

The Lerner Index in Banking Market for United Arab Emirates measures the degree of market power in the banking sector, indicating the pricing power of banks relative to a perfectly competitive market.

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 Lerner Index is an economic measure that quantifies the market power of a firm. For the banking sector, it provides insight into the degree of competition, with a higher index value suggesting greater pricing power and less competitive pressures.

Methodology

The data is calculated by the World Bank using bank-level data.

Historical Context

Policymakers and regulators use the Lerner Index to assess the competitiveness of the banking industry and inform policy decisions.

Key Facts

  • The Lerner Index ranges from 0 to 1, with 0 indicating perfect competition.
  • A higher Lerner Index suggests greater market power and less competitive pressures.
  • The Lerner Index is calculated as the difference between output prices and marginal costs, divided by output prices.

FAQs

Q: What does this economic trend measure?

A: The Lerner Index in Banking Market for United Arab Emirates measures the degree of market power in the banking sector, indicating the pricing power of banks relative to a perfectly competitive market.

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

A: The Lerner Index provides insight into the competitiveness of the banking industry, which is important for policymakers, regulators, and market participants to understand.

Q: How is this data collected or calculated?

A: The data is calculated by the World Bank using bank-level data.

Q: How is this trend used in economic policy?

A: Policymakers and regulators use the Lerner Index to assess the competitiveness of the banking industry and inform policy decisions.

Q: Are there update delays or limitations?

A: The Lerner Index data may have update delays or limitations depending on the availability of underlying bank-level data.

Related Trends

Citation

U.S. Federal Reserve, Lerner Index in Banking Market for United Arab Emirates (DDOI04AEA066NWDB), retrieved from FRED.