Uganda - Risk premium on lending (lending rate minus treasury bill rate, %)

The value for Risk premium on lending (lending rate minus treasury bill rate, %) in Uganda was 10.04 as of 2018. As the graph below shows, over the past 26 years this indicator reached a maximum value of 15.16 in 2010 and a minimum value of -0.78 in 1992.

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.

See also:

Year Value
1992 -0.78
1994 8.24
1995 11.41
1996 8.59
1997 10.78
1998 13.09
1999 14.12
2000 9.73
2001 11.66
2002 13.24
2003 2.08
2004 11.59
2005 11.14
2006 10.58
2007 10.02
2008 11.37
2009 13.56
2010 15.16
2011 7.22
2012 10.45
2013 13.36
2014 11.36
2015 6.77
2016 8.00
2017 10.68
2018 10.04

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 risk premium on lending is the spread between the lending rate to the private sector and the "risk-free" government rate. Spreads are expressed as an annual average. A small spread indicates that the market considers its best corporate customers to be low risk; a negative value indicates that the market considers its best corporate clients to be lower risk than the government.

Periodicity: Annual

Classification

Topic: Financial Sector Indicators

Sub-Topic: Interest rates