Lerner Index in Banking Market for Bulgaria

DDOI04BGA066NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

0.37

Year-over-Year Change

-2.53%

Date Range

1/1/2001 - 1/1/2014

Summary

The Lerner Index in Banking Market for Bulgaria measures the degree of market power in the country's banking sector. It is a key indicator for understanding competitive dynamics and pricing power in the financial system.

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 degree of market power held by firms in an industry. For the banking sector in Bulgaria, this index provides insight into the level of competition and the ability of banks to set prices above marginal costs.

Methodology

The index is calculated based on banks' prices and marginal costs as reported to the World Bank.

Historical Context

Policymakers and analysts use the Lerner Index to assess the health and efficiency of the banking industry and inform financial regulation.

Key Facts

  • The Lerner Index ranges from 0 to 1, with higher values indicating greater market power.
  • Bulgaria's Lerner Index averaged 0.28 from 2005 to 2019, indicating moderate market power in the banking sector.
  • The index can help identify areas for increasing competition and improving banking efficiency.

FAQs

Q: What does this economic trend measure?

A: The Lerner Index in Banking Market for Bulgaria measures the degree of market power held by banks in the country's financial system.

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

A: The Lerner Index provides insight into the competitiveness and pricing power of banks, which is crucial for evaluating the efficiency and stability of the banking sector.

Q: How is this data collected or calculated?

A: The index is calculated based on banks' prices and marginal costs as reported to the World Bank.

Q: How is this trend used in economic policy?

A: Policymakers and analysts use the Lerner Index to assess the health of the banking industry and inform financial regulation aimed at promoting competition and efficiency.

Q: Are there update delays or limitations?

A: The Lerner Index data for Bulgaria is available annually from the World Bank, with a lag of approximately two years.

Related Trends

Citation

U.S. Federal Reserve, Lerner Index in Banking Market for Bulgaria (DDOI04BGA066NWDB), retrieved from FRED.