Bangladesh | 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
People's Republic of Bangladesh
Records
63
Source
Bangladesh | 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 2.55262881
1977 2.26915475
1978 2.26915475
1979 2.26915475
1980 1.16107014
1981 -2.47246941
1982 -2.47246941
1983 -2.47246941
1984 -2.47246941
1985 -2.47246941
1986 -0.61675513
1987 1.23895916
1988 1.23895916
1989 1.23895916
1990 1.19360331
1991 1.10494292
1992 2.05068786
1993 4.64447556
1994 6.19321285
1995 6.13748693
1996 4.73051066
1997 3.78937676
1998 3.63083333
1999 3.66166667
2000 4.06833333
2001 3.66666667
2002 4.70166667
2003 4.9325
2004 4.5975
2005 5.08083333
2006 5.67916667
2007 5.64166667
2008 5.3425
2009 5.5125
2010 5.00833333
2011 4.48416667
2012 3.72833333
2013 1.87166667
2014 3.145
2015 3.465
2016 4.21
2017 3.93416667
2018 2.99333333
2019 2.78083333
2020 2.2275
2021 2.27916667
2022 1.56586404

Bangladesh | 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
People's Republic of Bangladesh
Records
63
Source