Bank Lending Deposit Spread for Dominica

DDEI02DMA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

5.09

Year-over-Year Change

-13.24%

Date Range

1/1/1982 - 1/1/2020

Summary

The Bank Lending Deposit Spread for Dominica measures the difference between the lending and deposit interest rates in the Dominican banking system. This key financial indicator signals 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 charged on loans and the average interest paid on deposits. It reflects the financial intermediation costs and risks faced by banks, which influences the accessibility and affordability of credit for businesses and households.

Methodology

The data is collected and reported by the World Bank from official national sources.

Historical Context

The lending-deposit spread is widely used by policymakers, economists, and investors to assess the competitiveness and health of the Dominican financial system.

Key Facts

  • The lending-deposit spread in Dominica averaged 8.91% from 2000 to 2020.
  • A high spread can indicate lack of competition or inefficiency in the banking sector.
  • Reducing the spread is a policy goal to improve access to affordable credit.

FAQs

Q: What does this economic trend measure?

A: The Bank Lending Deposit Spread for Dominica measures the difference between the average interest rate charged on loans and the average interest paid on deposits in the Dominican banking system.

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

A: The lending-deposit spread is a key indicator of the efficiency and competitiveness of the Dominican financial sector, which influences the cost and availability of credit for businesses and consumers.

Q: How is this data collected or calculated?

A: The data is collected and reported by the World Bank from official national sources.

Q: How is this trend used in economic policy?

A: Policymakers and economists monitor the lending-deposit spread to assess the health and competitiveness of the Dominican financial system, which informs policies to promote financial inclusion and affordable credit.

Q: Are there update delays or limitations?

A: The World Bank data is published annually with a delay of up to two years, so the most recent values may not reflect the current state of the Dominican banking sector.

Related Trends

Citation

U.S. Federal Reserve, Bank Lending Deposit Spread for Dominica (DDEI02DMA156NWDB), retrieved from FRED.