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

The value for Interest rate spread (lending rate minus deposit rate, %) in Peru was 10.28 as of 2021. As the graph below shows, over the past 33 years this indicator reached a maximum value of 1,820.45 in 1990 and a minimum value of -6.29 in 1988.

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
1988 -6.29
1989 216.91
1990 1,820.45
1991 499.99
1992 88.49
1993 50.10
1994 33.00
1995 20.45
1996 16.63
1997 15.90
1998 17.51
1999 18.78
2000 16.70
2001 15.06
2002 16.57
2003 17.18
2004 21.69
2005 22.11
2006 19.14
2007 17.93
2008 18.23
2009 16.69
2010 16.85
2011 15.01
2012 15.36
2013 14.61
2014 11.92
2015 11.99
2016 11.55
2017 12.33
2018 11.20
2019 10.72
2020 11.08
2021 10.28

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