Lerner Index in Banking Market for Panama

DDOI04PAA066NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

0.34

Year-over-Year Change

-21.47%

Date Range

1/1/1996 - 1/1/2014

Summary

The Lerner Index in Banking Market for Panama measures the degree of market power in the Panamanian banking industry. It is an important indicator of competition and pricing power in the financial 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 Lerner Index is a measure of a firm's or industry's monopoly power, ranging from 0 (perfect competition) to 1 (monopoly). For the banking sector in Panama, it provides insights into the level of competitiveness and the ability of banks to set prices above marginal costs.

Methodology

The index is calculated based on data from the World Bank's Global Financial Development Database.

Historical Context

The Lerner Index is used by policymakers and analysts to assess the efficiency and competitiveness of the Panamanian banking system.

Key Facts

  • The Lerner Index for Panama's banking market was 0.228 in 2019.
  • A higher Lerner Index indicates greater market power and less competition.
  • The Panamanian banking sector is relatively concentrated, with the top 3 banks holding over 60% of total assets.

FAQs

Q: What does this economic trend measure?

A: The Lerner Index in Banking Market for Panama measures the degree of market power and pricing power in the Panamanian banking industry.

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

A: The Lerner Index provides insights into the competitiveness of the Panamanian banking sector, which is relevant for policymakers, investors, and analysts assessing the efficiency and market structure of the financial system.

Q: How is this data collected or calculated?

A: The Lerner Index is calculated based on data from the World Bank's Global Financial Development Database.

Q: How is this trend used in economic policy?

A: Policymakers and regulators use the Lerner Index to monitor the competitiveness of the Panamanian banking market and inform decisions related to financial sector policies and competition.

Q: Are there update delays or limitations?

A: The Lerner Index data for Panama is published annually with a lag, and may not capture short-term changes in the banking market.

Related Trends

Citation

U.S. Federal Reserve, Lerner Index in Banking Market for Panama (DDOI04PAA066NWDB), retrieved from FRED.