Bank Lending Deposit Spread for Hong Kong SAR, China

DDEI02HKA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

4.94

Year-over-Year Change

1.59%

Date Range

1/1/1994 - 1/1/2020

Summary

The Bank Lending Deposit Spread for Hong Kong SAR, China measures the difference between the interest rate on bank loans and the interest rate paid on bank deposits. This metric is a key indicator of the profitability and health of the Hong Kong 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 rate paid on deposits by commercial banks in Hong Kong. This spread is a critical factor in bank profitability and a barometer of financial market conditions.

Methodology

The data is collected and calculated by the World Bank based on official statistics from the Hong Kong Monetary Authority.

Historical Context

Policymakers and economists closely monitor this spread as it reflects the efficiency and competitiveness of the Hong Kong banking system.

Key Facts

  • Hong Kong has one of the most developed banking sectors in the world.
  • The lending-deposit spread averaged 2.07% in 2021.
  • A narrower spread indicates greater competition and efficiency in the banking system.

FAQs

Q: What does this economic trend measure?

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

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

A: The lending-deposit spread is a key indicator of the profitability and health of the Hong Kong banking sector, reflecting its efficiency and competitiveness.

Q: How is this data collected or calculated?

A: The data is collected and calculated by the World Bank based on official statistics from the Hong Kong Monetary Authority.

Q: How is this trend used in economic policy?

A: Policymakers and economists closely monitor this spread as it provides insights into the overall condition of the Hong Kong financial system and can inform policy decisions.

Q: Are there update delays or limitations?

A: The data is published annually with a relatively short delay, making it a timely indicator of the Hong Kong banking sector's performance.

Related Trends

Citation

U.S. Federal Reserve, Bank Lending Deposit Spread for Hong Kong SAR, China (DDEI02HKA156NWDB), retrieved from FRED.