Bank Lending Deposit Spread for Ethiopia

DDEI02ETA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

3.32

Year-over-Year Change

-26.12%

Date Range

1/1/1985 - 1/1/2008

Summary

The Bank Lending Deposit Spread for Ethiopia measures the difference between the lending and deposit interest rates in the country's banking sector. This key indicator provides insights into the profitability and efficiency of the financial system.

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 interest rate charged by banks on loans and the interest rate paid on deposits. It is a widely used metric to evaluate the competitiveness and health of a nation's banking industry.

Methodology

The data is collected and calculated by the World Bank from domestic sources.

Historical Context

Policymakers and analysts use this metric to assess financial sector development and the degree of competition in the banking market.

Key Facts

  • The bank lending deposit spread in Ethiopia was 5.58% in 2020.
  • A wider spread indicates less competition in the banking sector.
  • A narrower spread suggests greater efficiency and lower costs for borrowers.

FAQs

Q: What does this economic trend measure?

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

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

A: This metric provides insights into the profitability, competitiveness, and efficiency of Ethiopia's banking sector, which is crucial for assessing financial system development and access to credit.

Q: How is this data collected or calculated?

A: The data is collected and calculated by the World Bank from domestic sources.

Q: How is this trend used in economic policy?

A: Policymakers and analysts use this metric to evaluate the financial sector's development and the degree of competition in the banking market, which informs policies aimed at promoting a healthy and efficient financial system.

Q: Are there update delays or limitations?

A: The data is updated annually by the World Bank, and there may be delays in reporting from domestic sources.

Related Trends

Citation

U.S. Federal Reserve, Bank Lending Deposit Spread for Ethiopia (DDEI02ETA156NWDB), retrieved from FRED.