Bolivia - Interest rate spread (lending rate minus deposit rate, %)

The value for Interest rate spread (lending rate minus deposit rate, %) in Bolivia was 4.86 as of 2021. As the graph below shows, over the past 34 years this indicator reached a maximum value of 37.14 in 1994 and a minimum value of 4.05 in 2020.

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
1987 19.06
1988 12.06
1989 13.61
1990 17.98
1991 17.37
1992 22.29
1993 31.70
1994 37.14
1995 32.15
1996 36.81
1997 35.32
1998 26.59
1999 23.11
2000 23.61
2001 10.24
2002 11.05
2003 6.25
2004 7.05
2005 11.68
2006 7.86
2007 9.32
2008 9.22
2009 8.92
2010 8.86
2011 9.51
2012 9.51
2013 9.31
2014 6.74
2015 6.66
2016 6.51
2017 5.64
2018 5.00
2019 5.22
2020 4.05
2021 4.86

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