The global interest rate spread, defined as the lending rate minus the deposit rate, exhibits remarkable variation across countries in 2024. With Zimbabwe topping at a significant spread of 97.09, such disparities often indicate varied economic conditions and banking sector efficiencies. Countries like Madagascar, Peru, and Brazil also exhibit high spreads, reflecting higher risk premiums or cost of intermediation.
In contrast, mature banking systems with greater financial stability, like Malaysia and Qatar, show much narrower spreads, suggesting efficient financial services and lower risk premiums. The year-on-year variation and longer-term compound growth rates stayed mostly stable, providing a semblance of continuity in economic policy applications.
Future trends in interest rate spreads will likely focus on the impact of global economic policy shifts, inflationary pressures, and potential geopolitical developments. Monitoring these spreads helps in understanding country-specific risk evaluations and the broader health of their financial sectors.
Top countries in Interest Rate Spread (Lending Rate Minus Deposit Rate) by Country
# | 10 Countries | Percent | Last Year | |
---|---|---|---|---|
1 | 1 Zimbabwe | 97.09 | 2022 | View data |
2 | 2 Madagascar | 36.05 | 2023 | View data |
3 | 3 Peru | 28.92 | 2023 | View data |
4 | 4 Brazil | 27.09 | 2023 | View data |
5 | 5 Tajikistan | 21.75 | 2023 | View data |
6 | 6 South Sudan | 16.68 | 2023 | View data |
7 | 7 Kyrgyzstan | 15.99 | 2023 | View data |
8 | 8 Sao Tome and Principe | 15.97 | 2023 | View data |
9 | 9 Democratic Republic of the Congo | 15.72 | 2023 | View data |
10 | 10 Gambia | 14.67 | 2023 | View data |