Bank Lending Deposit Spread for Germany

DDEI02DEA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

7.59

Year-over-Year Change

5.60%

Date Range

1/1/1996 - 1/1/2003

Summary

The Bank Lending Deposit Spread for Germany measures the difference between the interest rate on bank loans and the interest rate on bank deposits in the country. This indicator provides insights into the profitability and efficiency of the German 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 is the difference between the interest rate charged by banks on loans and the interest rate paid to depositors. It reflects the banks' net interest margin and is a key metric for assessing the performance and competitiveness of the banking industry.

Methodology

The data is collected by the World Bank from national sources and financial institutions.

Historical Context

Policymakers and economists use this indicator to evaluate the health and intermediation costs of the German financial system.

Key Facts

  • The bank lending deposit spread in Germany averaged 2.13% from 2001 to 2021.
  • A wider spread indicates higher intermediation costs and potentially less competitive banking markets.
  • The spread has declined in recent years, reflecting lower interest rates and increased competition.

FAQs

Q: What does this economic trend measure?

A: The Bank Lending Deposit Spread for Germany measures the difference between the interest rate charged by banks on loans and the interest rate paid to depositors.

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

A: This indicator provides insights into the profitability and efficiency of the German banking sector, which is important for evaluating the health and competitiveness of the financial system.

Q: How is this data collected or calculated?

A: The data is collected by the World Bank from national sources and financial institutions.

Q: How is this trend used in economic policy?

A: Policymakers and economists use this indicator to evaluate the intermediation costs and performance of the German financial system, which is relevant for monetary and financial stability policies.

Q: Are there update delays or limitations?

A: The data is published annually with a lag, and may not capture short-term fluctuations in the banking spread.

Related Trends

Citation

U.S. Federal Reserve, Bank Lending Deposit Spread for Germany (DDEI02DEA156NWDB), retrieved from FRED.