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

The value for Interest rate spread (lending rate minus deposit rate, %) in Brazil was 25.67 as of 2021. As the graph below shows, over the past 24 years this indicator reached a maximum value of 58.36 in 1998 and a minimum value of 19.58 in 2013.

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
1997 53.84
1998 58.36
1999 54.42
2000 39.63
2001 39.76
2002 43.73
2003 45.11
2004 39.51
2005 37.75
2006 36.88
2007 33.14
2008 35.59
2009 35.37
2010 31.12
2011 32.89
2012 28.73
2013 19.58
2014 21.98
2015 31.34
2016 39.65
2017 38.40
2018 32.21
2019 32.04
2020 26.85
2021 25.67

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