Sierra Leone - Interest rate spread (lending rate minus deposit rate, %)

The value for Interest rate spread (lending rate minus deposit rate, %) in Sierra Leone was 12.30 as of 2020. As the graph below shows, over the past 43 years this indicator reached a maximum value of 23.46 in 1993 and a minimum value of 1.83 in 1980.

Definition: 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.

Source: International Monetary Fund, International Financial Statistics and data files.

See also:

Year Value
1977 4.00
1978 4.00
1979 3.75
1980 1.83
1981 5.00
1982 5.00
1983 6.25
1984 6.00
1985 5.67
1986 3.02
1987 15.88
1988 11.67
1989 9.67
1990 12.00
1991 8.45
1992 8.17
1993 23.46
1994 15.70
1995 21.80
1996 18.17
1997 13.96
1998 16.71
1999 17.33
2000 17.01
2001 16.50
2002 12.77
2003 10.33
2004 10.92
2005 12.79
2006 12.86
2007 14.21
2008 13.91
2009 12.44
2010 11.78
2011 10.69
2012 10.61
2013 11.65
2014 12.81
2015 14.24
2016 10.86
2017 10.13
2018 9.88
2019 11.56
2020 12.30

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.

Aggregation method: Median

Periodicity: Annual

Classification

Topic: Financial Sector Indicators

Sub-Topic: Interest rates