Bank Lending Deposit Spread for Islamic Republic of Iran
DDEI02IRA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
5.20
Year-over-Year Change
5.05%
Date Range
1/1/2004 - 1/1/2016
Summary
The Bank Lending Deposit Spread for Islamic Republic of Iran measures the difference between the lending and deposit interest rates in the Iranian banking system. This metric is a key indicator of financial sector health and profitability.
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 on loans and the interest rate paid on deposits. This spread is a fundamental measure of bank profitability and the efficiency of the financial intermediation process in Iran.
Methodology
The data is collected and reported by the World Bank as part of their Global Financial Development Database.
Historical Context
Policymakers and analysts use this indicator to assess the functioning and competitiveness of Iran's banking sector.
Key Facts
- The spread averaged 5.7 percentage points in 2020.
- A wider spread indicates greater bank profitability but potentially less access to credit.
- The spread has gradually narrowed from over 7 percentage points in the early 2000s.
FAQs
Q: What does this economic trend measure?
A: The Bank Lending Deposit Spread measures the difference between the interest rate charged on loans and the interest rate paid on deposits by banks in Iran.
Q: Why is this trend relevant for users or analysts?
A: The lending-deposit spread is a key indicator of the efficiency and profitability of the banking sector, which is crucial for economic growth and development.
Q: How is this data collected or calculated?
A: The data is collected and reported by the World Bank as part of their Global Financial Development Database.
Q: How is this trend used in economic policy?
A: Policymakers and analysts use this indicator to assess the functioning and competitiveness of Iran's banking sector and inform policies to promote financial sector development.
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 lending-deposit spread.
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Citation
U.S. Federal Reserve, Bank Lending Deposit Spread for Islamic Republic of Iran (DDEI02IRA156NWDB), retrieved from FRED.