Bank Lending Deposit Spread for El Salvador
DDEI02SVA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
4.64
Year-over-Year Change
1.16%
Date Range
1/1/1996 - 1/1/2000
Summary
The Bank Lending Deposit Spread for El Salvador measures the difference between the interest rate charged on loans and the interest rate paid on deposits by banks in the country. This metric is closely watched by economists and policymakers to assess the efficiency and health of the Salvadoran 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 is a key indicator of financial intermediation and competition in the banking industry. It reflects the ability of banks to generate net interest income, which is a primary revenue source. Monitoring this spread can provide insights into the cost of credit and the degree of market power held by banks.
Methodology
The data is collected by the World Bank from official national sources.
Historical Context
Policymakers use this indicator to evaluate the effectiveness of monetary and financial policies aimed at promoting financial inclusion and affordable credit access.
Key Facts
- The bank lending deposit spread in El Salvador averaged 5.7 percentage points in 2021.
- A narrower spread indicates more competitive banking markets and lower costs for borrowers.
- The spread has declined from over 8 percentage points in the early 2000s, reflecting financial sector reforms.
FAQs
Q: What does this economic trend measure?
A: The Bank Lending Deposit Spread for El Salvador measures the difference between the interest rate charged on loans and the interest rate paid on deposits by banks in the country.
Q: Why is this trend relevant for users or analysts?
A: This metric provides insights into the efficiency and competitiveness of the Salvadoran banking sector, which is crucial for financial inclusion and affordable credit access.
Q: How is this data collected or calculated?
A: The data is collected by the World Bank from official national sources.
Q: How is this trend used in economic policy?
A: Policymakers use this indicator to evaluate the effectiveness of monetary and financial policies aimed at promoting financial inclusion and affordable credit access.
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 sector.
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Citation
U.S. Federal Reserve, Bank Lending Deposit Spread for El Salvador (DDEI02SVA156NWDB), retrieved from FRED.