5-Bank Asset Concentration for Costa Rica

DDOI06CRA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

74.66

Year-over-Year Change

0.19%

Date Range

1/1/2000 - 1/1/2021

Summary

The 5-Bank Asset Concentration for Costa Rica measures the share of total banking system assets held by the five largest banks in the country. This metric is a key indicator of market concentration and competitiveness 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 5-Bank Asset Concentration ratio provides insight into the degree of consolidation and market power within Costa Rica's banking industry. It is commonly used by economists and policymakers to assess the competitive dynamics and financial stability of the national banking system.

Methodology

This data is calculated by the World Bank based on information reported by national central banks and financial authorities.

Historical Context

Policymakers monitor this indicator to understand the systemic risks and competitive environment in the banking sector, which has implications for lending, interest rates, and financial access.

Key Facts

  • The 5-Bank Asset Concentration in Costa Rica was 77.4% in 2020.
  • Concentration has increased over the past decade as the largest banks have grown their market share.
  • High banking concentration can reduce competition and lead to higher borrowing costs for consumers and businesses.

FAQs

Q: What does this economic trend measure?

A: The 5-Bank Asset Concentration for Costa Rica measures the percentage of total banking system assets held by the five largest banks in the country.

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

A: This metric provides insight into the level of market concentration and competition within Costa Rica's banking sector, which has important implications for financial stability, access to credit, and interest rates.

Q: How is this data collected or calculated?

A: The data is calculated by the World Bank based on information reported by Costa Rica's central bank and financial authorities.

Q: How is this trend used in economic policy?

A: Policymakers and regulators monitor the 5-Bank Asset Concentration to assess systemic risks and the competitive dynamics of the banking industry, which informs decisions around financial sector oversight and competition policy.

Q: Are there update delays or limitations?

A: The World Bank publishes this data on an annual basis, so there may be a 1-year delay in the most recent figures being available.

Related Trends

Citation

U.S. Federal Reserve, 5-Bank Asset Concentration for Costa Rica (DDOI06CRA156NWDB), retrieved from FRED.