Tanzania - Risk premium on lending
Risk premium on lending (lending rate minus treasury bill rate, %)
The value for Risk premium on lending (lending rate minus treasury bill rate, %) in Tanzania was 8.59 as of 2011. As the graph below shows, over the past 18 years this indicator reached a maximum value of 18.67 in 1996 and a minimum value of -3.00 in 1993.
Definition: Risk premium on lending is the interest rate charged by banks on loans to private sector customers minus the "risk free" treasury bill interest rate at which short-term government securities are issued or traded in the market. In some countries this spread may be negative, indicating that the market considers its best corporate clients to be lower risk than the government. The terms and conditions attached to lending rates differ by country, however, limiting their comparability.
Source: International Monetary Fund, International Financial Statistics database.
Topic: Financial Sector Indicators
Sub-Topic: Interest rates