Bank Lending Deposit Spread for Denmark

DDEI02DKA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

4.70

Year-over-Year Change

-20.34%

Date Range

1/1/1996 - 1/1/2002

Summary

The Bank Lending Deposit Spread for Denmark measures the difference between the interest rate charged on loans and the interest rate paid on deposits by banks in Denmark. This metric is a key indicator of the profitability and efficiency of the country'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 reflects the profit margin earned by banks and is used to assess the competitiveness and health of the banking industry.

Methodology

The data is collected and reported by the World Bank based on submissions from the central bank of Denmark.

Historical Context

Policymakers and analysts monitor this spread to gauge the transmission of monetary policy and the degree of competition in the Danish banking market.

Key Facts

  • The average spread in Denmark was 2.8 percentage points in 2021.
  • The spread has declined from a high of 4.3 percentage points in 2009.
  • A narrower spread indicates greater competition and efficiency in the banking sector.

FAQs

Q: What does this economic trend measure?

A: The Bank Lending Deposit Spread for Denmark measures the difference between the average interest rate charged on loans and the average interest rate paid on deposits by banks in the country.

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

A: This metric is a key indicator of the profitability and competitiveness of the Danish banking sector, which is important for policymakers and market participants to monitor.

Q: How is this data collected or calculated?

A: The data is collected and reported by the World Bank based on submissions from the central bank of Denmark.

Q: How is this trend used in economic policy?

A: Policymakers and analysts monitor the bank lending deposit spread to gauge the transmission of monetary policy and the degree of competition in the Danish banking market.

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 Denmark (DDEI02DKA156NWDB), retrieved from FRED.