Australia | Interest rate spread (lending rate minus deposit rate, %)

Interest rate spread is the interest rate charged by banks on loans to private sector customers minus the interest rate paid by commercial or similar banks for demand, time, or savings deposits. The terms and conditions attached to these rates differ by country, however, limiting their comparability. Development relevance: Both banking and financial systems enhance growth, the main factor in poverty reduction. At low levels of economic development commercial banks tend to dominate the financial system, while at higher levels domestic stock markets tend to become more active and efficient. The size and mobility of international capital flows make it increasingly important to monitor the strength of financial systems. Robust financial systems can increase economic activity and welfare, but instability can disrupt financial activity and impose widespread costs on the economy. Limitations and exceptions: Countries use a variety of reporting formats, sample designs, interest compounding formulas, averaging methods, and data presentations for indices and other data series on interest rates. The IMF's Monetary and Financial Statistics Manual does not provide guidelines beyond the general recommendation that such data should reflect market prices and effective (rather than nominal) interest rates and should be representative of the financial assets and markets to be covered. For more information, please see http://www.imf.org/external/pubs/ft/mfs/manual/index.htm. Statistical concept and methodology: The interest rate spread - the margin between the cost of mobilizing liabilities and the earnings on assets - measures financial sector efficiency in intermediation. A narrow spread means low transaction costs, which reduces the cost of funds for investment, crucial to economic growth.
Publisher
The World Bank
Origin
Commonwealth of Australia
Records
63
Source
Australia | Interest rate spread (lending rate minus deposit rate, %)
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981 -1.79124294
1982 -1.72168079
1983 -0.43312147
1984 -0.96483051
1985 -1.59286723
1986 -1.21694915
1987 0.20155367
1988 0.72189266
1989 -1.88806497
1990 0.52704802
1991 2.36497175
1992 3.45918079
1993 3.65204802
1994 3.3375
1995 3.35148305
1996 3.04844633
1997 2.11836158
1998 2.34646893
1999 2.5075565
2000 2.80967514
2001 3.10416667
2002 2.6625
2003 3.10416667
2004 3.2
2005 3.36666667
2006 3.55
2007 3.66666667
2008 4.18333333
2009 2.94166667
2010 3.06666667
2011 3.4
2012 3.05833333
2013 2.92916667
2014 3.04583333
2015 3.27083333
2016 3.27916667
2017 3.23716667
2018 3.28166667
2019 3.54266667
2020
2021
2022

Australia | Interest rate spread (lending rate minus deposit rate, %)

Interest rate spread is the interest rate charged by banks on loans to private sector customers minus the interest rate paid by commercial or similar banks for demand, time, or savings deposits. The terms and conditions attached to these rates differ by country, however, limiting their comparability. Development relevance: Both banking and financial systems enhance growth, the main factor in poverty reduction. At low levels of economic development commercial banks tend to dominate the financial system, while at higher levels domestic stock markets tend to become more active and efficient. The size and mobility of international capital flows make it increasingly important to monitor the strength of financial systems. Robust financial systems can increase economic activity and welfare, but instability can disrupt financial activity and impose widespread costs on the economy. Limitations and exceptions: Countries use a variety of reporting formats, sample designs, interest compounding formulas, averaging methods, and data presentations for indices and other data series on interest rates. The IMF's Monetary and Financial Statistics Manual does not provide guidelines beyond the general recommendation that such data should reflect market prices and effective (rather than nominal) interest rates and should be representative of the financial assets and markets to be covered. For more information, please see http://www.imf.org/external/pubs/ft/mfs/manual/index.htm. Statistical concept and methodology: The interest rate spread - the margin between the cost of mobilizing liabilities and the earnings on assets - measures financial sector efficiency in intermediation. A narrow spread means low transaction costs, which reduces the cost of funds for investment, crucial to economic growth.
Publisher
The World Bank
Origin
Commonwealth of Australia
Records
63
Source