Czechia | 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
Czechia
Records
63
Source
Czechia | Interest rate spread (lending rate minus deposit rate, %)
1960
1961
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1971
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1974
1975
1976
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1978
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1980
1981
1982
1983
1984
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1989
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1991
1992
1993 7.03833333
1994 6.04833333
1995 5.8375
1996 5.75083333
1997 5.48958333
1998 4.72791667
1999 4.20408333
2000 3.7405
2001 4.32308333
2002 4.72666667
2003 4.61583333
2004 4.74416667
2005 4.6025
2006 4.4078003
2007 4.46469368
2008 4.639675
2009 4.72494167
2010 4.80625
2011 4.67958333
2012 4.3824206
2013 4.10834484
2014 3.94340557
2015 3.75320048
2016 3.53413294
2017 3.31461904
2018 3.26571951
2019 3.29747437
2020 3.04074886
2021 2.96872367
2022 2.82732297

Czechia | 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
Czechia
Records
63
Source