Bank concentration (%)

This indicator measures the proportion of total banking assets held by the three largest banks within a particular market, offering insight into the competitive landscape and risk levels inherent in the banking sector. Derived from Bankscope's comprehensive database, the calculation is executed by dividing the aggregate assets of these dominant institutions by the total assets of all banks within the same dataset. It serves as a critical gauge for regulators and investors, highlighting potential vulnerabilities in a market where dominance by a few can lead to systemic risks. Notably, this metric is only applicable in scenarios where three or more banks are present, thus ensuring relevance in diverse market conditions. Source: