5-Bank Asset Concentration for United States

DDOI06USA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

49.68

Year-over-Year Change

12.16%

Date Range

1/1/2000 - 1/1/2021

Summary

The 5-Bank Asset Concentration for the United States measures the total assets held by the five largest banks as a percentage of the country's total banking assets. This statistic is a key indicator of banking industry concentration and competitiveness.

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 metric provides insight into the structure and consolidation of the U.S. banking sector. A higher concentration value suggests greater dominance by a small number of large institutions, which can have implications for competition, innovation, and systemic risk.

Methodology

The data is calculated by the World Bank using financial sector assets reported by national authorities.

Historical Context

Policymakers and analysts monitor this trend to assess financial stability and the potential for monopolistic practices in the banking industry.

Key Facts

  • The 5-Bank Asset Concentration ratio in the U.S. reached a peak of 44.8% in 2009.
  • In 2021, the 5 largest U.S. banks held 51.9% of total banking assets.
  • Increased consolidation can reduce competition and increase systemic risk in the financial sector.

FAQs

Q: What does this economic trend measure?

A: The 5-Bank Asset Concentration measures the total assets held by the five largest banks in the United States as a percentage of the country's total banking assets.

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

A: This metric provides insight into the level of consolidation and competitiveness in the U.S. banking industry, which has implications for financial stability, innovation, and consumer choice.

Q: How is this data collected or calculated?

A: The data is calculated by the World Bank using financial sector asset information reported by national authorities.

Q: How is this trend used in economic policy?

A: Policymakers and regulators monitor banking concentration to assess the potential for monopolistic practices and systemic risk in the financial system.

Q: Are there update delays or limitations?

A: The data is published annually by the World Bank, so there may be a delay of up to a year before the most recent information is available.

Related Trends

Citation

U.S. Federal Reserve, 5-Bank Asset Concentration for United States (DDOI06USA156NWDB), retrieved from FRED.