Lerner Index in Banking Market for Philippines

DDOI04PHA066NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

0.29

Year-over-Year Change

49.54%

Date Range

1/1/1996 - 1/1/2013

Summary

The Lerner Index in Banking Market for Philippines measures the market power of banks in the Philippines. It serves as an indicator of competitiveness and efficiency in the country's 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 Lerner Index is an economic measure that quantifies the degree of market power exercised by firms. For the banking sector, it provides insight into the level of competition and monopolistic tendencies within the market.

Methodology

The index is calculated based on banks' price-setting behavior and marginal costs.

Historical Context

Policymakers use the Lerner Index to evaluate the competitiveness of the banking industry and inform regulatory decisions.

Key Facts

  • The Lerner Index ranges from 0 (perfect competition) to 1 (monopoly).
  • A higher Lerner Index indicates greater market power for banks.
  • The Philippines' Lerner Index has trended downward since the early 2000s.

FAQs

Q: What does the Lerner Index in Banking Market for Philippines measure?

A: The Lerner Index measures the market power of banks in the Philippine banking sector, providing an indicator of competitiveness and efficiency.

Q: Why is the Lerner Index relevant for users or analysts?

A: The Lerner Index is an important metric for evaluating the level of competition within the banking industry, which has implications for consumer welfare and financial stability.

Q: How is the Lerner Index data collected or calculated?

A: The index is calculated based on banks' price-setting behavior and marginal costs.

Q: How is the Lerner Index used in economic policy?

A: Policymakers use the Lerner Index to assess the competitiveness of the banking sector and inform regulatory decisions aimed at promoting a healthy, competitive banking environment.

Q: Are there update delays or limitations for the Lerner Index data?

A: The Lerner Index data may be subject to occasional delays in updates and can be influenced by factors such as data availability and methodological changes over time.

Related Trends

Citation

U.S. Federal Reserve, Lerner Index in Banking Market for Philippines (DDOI04PHA066NWDB), retrieved from FRED.