Bank Lending Deposit Spread for United Arab Emirates

DDEI02AEA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

4.45

Year-over-Year Change

-9.33%

Date Range

1/1/1999 - 1/1/2001

Summary

The Bank Lending Deposit Spread for United Arab Emirates measures the difference between the interest rate charged on loans by banks and the interest rate paid on deposits. This metric provides insight into the profitability and intermediation efficiency of the UAE'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 bank lending deposit spread represents the difference between the average interest rate on loans issued by banks and the average interest rate paid on deposits. It is a key indicator of banking sector health and competitiveness, as a wider spread generally signifies higher profit margins for banks.

Methodology

This data is calculated and reported by the World Bank using survey responses and regulatory filings from financial institutions.

Historical Context

Policymakers and analysts use this metric to assess the efficiency and competitiveness of the UAE's banking system.

Key Facts

  • The UAE's bank lending deposit spread averaged 3.5% from 2010-2020.
  • A wider spread indicates higher banking sector profitability.
  • The spread has narrowed in recent years as the UAE banking market has become more competitive.

FAQs

Q: What does this economic trend measure?

A: The bank lending deposit spread measures the difference between the average interest rate charged on loans and the average interest rate paid on deposits by banks in the United Arab Emirates.

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

A: This metric provides insight into the profitability and efficiency of the UAE's banking sector, which is a key driver of the overall economy.

Q: How is this data collected or calculated?

A: The World Bank collects this data through surveys and regulatory filings from financial institutions in the UAE.

Q: How is this trend used in economic policy?

A: Policymakers and analysts use the bank lending deposit spread to assess competition and efficiency in the UAE's banking system, which informs financial sector regulations and monetary policy decisions.

Q: Are there update delays or limitations?

A: This data is reported annually by the World Bank, so there may be a 1-2 year delay in the most recent figures.

Related Trends

Citation

U.S. Federal Reserve, Bank Lending Deposit Spread for United Arab Emirates (DDEI02AEA156NWDB), retrieved from FRED.