Categories > International Data > Countries > United Kingdom

# Boone Indicator in Banking Market for United Kingdom (DDOI05GBA156NWDB)

Observation:

2014: -0.02786 (+ more)Updated: Aug 17, 2016

2014: | -0.02786 | |

2013: | -0.03369 | |

2012: | -0.00194 | |

2011: | -0.01577 | |

2010: | -0.03108 | |

View All |

Units:

Index,Not Seasonally Adjusted

Frequency:

AnnualA measure of degree of competition, calculated as the elasticity of profits to marginal costs. To obtain the elasticity, the log of profits (measured by return on assets) is regressed on the log of marginal costs. The estimated coefficient (computed from the first derivative of a trans-log cost function) is the elasticity. The rationale behind the indicator is that higher profits are achieved by more-efficient banks. Hence, the more negative the Boone indicator, the higher the degree of competition is because the effect of reallocation is stronger. Estimations of the Boone indicator in this database follow the methodology used by Schaeck and Cihák 2010 with a modification to use marginal costs instead of average costs. Regional estimates of the Boone indicator pool the bank data by regions (for more information, see Hay and Liu 1997; Boone 2001; Boone, Griffith, and Harrison 2005). (Calculated from underlying bank-by-bank data from Bankscope)

Source Code: GFDD.OI.05

Boone Indicator in Banking Market for United Kingdom

**Enter date as YYYY-MM-DD**

#### Customize data:

Write a custom formula to transform one or more series or combine two or more series.

You can begin by adding a series to combine with your existing series.

Now create a custom formula to combine or transform the series.

Need help? []

For example, invert an exchange rate by using formula 1/a, where “a” refers to the first FRED data series added to this line. Or calculate the spread between 2 interest rates, a and b, by using the formula a - b.

Use the assigned data series variables (a, b, c, etc.) together with operators (+, -, *, /, ^, etc.), parentheses {(,)}, and constants (1, 1.5, 2, etc.) to create your own formula (e.g., 1/a, a-b, (a+b)/2, (a/(a+b+c))*100). As noted above, you may add other data series to this line before entering a formula.

Finally, you can change the units of your new series.

**Enter date as YYYY-MM-DD**

#### Add data series to graph:

**Data in this graph are copyrighted. Please review the copyright information in the series notes before sharing.**

**Source:**
World Bank

**Release:**
Global Financial Development

**Units:**
Index, Not Seasonally Adjusted

**Frequency:**
Annual

#### Notes:

A measure of degree of competition based on profit-efficiency in the banking market. It is calculated as the elasticity of profits to marginal costs. An increase in the Boone indicator implies a deterioration of the competitive conduct of financial intermediaries.

A measure of degree of competition, calculated as the elasticity of profits to marginal costs. To obtain the elasticity, the log of profits (measured by return on assets) is regressed on the log of marginal costs. The estimated coefficient (computed from the first derivative of a trans-log cost function) is the elasticity. The rationale behind the indicator is that higher profits are achieved by more-efficient banks. Hence, the more negative the Boone indicator, the higher the degree of competition is because the effect of reallocation is stronger. Estimations of the Boone indicator in this database follow the methodology used by Schaeck and Cihák 2010 with a modification to use marginal costs instead of average costs. Regional estimates of the Boone indicator pool the bank data by regions (for more information, see Hay and Liu 1997; Boone 2001; Boone, Griffith, and Harrison 2005). (Calculated from underlying bank-by-bank data from Bankscope)

Source Code: GFDD.OI.05

#### Suggested Citation:

World Bank, Boone Indicator in Banking Market for United Kingdom [DDOI05GBA156NWDB], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/DDOI05GBA156NWDB, June 23, 2017.

## Related Resources

## Related Categories

## Sources

## Releases

## Tags

### Confirm Delete

Are you sure you want to remove this series from the graph? This can not be undone.