Bank's Net Interest Margin for Slovakia

DDEI01SKA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

1.68

Year-over-Year Change

-40.55%

Date Range

1/1/2000 - 1/1/2021

Summary

The bank's net interest margin for Slovakia measures the difference between the interest income and interest expense of banks operating in the country. It serves as a key indicator of the profitability and efficiency of the Slovak banking sector.

Analysis & Context

This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.

Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.

About This Dataset

The net interest margin represents the difference between the average interest rate earned by banks on their loans and investments and the average interest rate paid on their deposits and other borrowings. It is a crucial metric for assessing the financial health and performance of the banking industry.

Methodology

The data is collected and calculated by the World Bank from reports submitted by financial institutions operating in Slovakia.

Historical Context

This trend is closely monitored by policymakers, regulators, and analysts to gauge the competitiveness and stability of the Slovak banking system.

Key Facts

  • The net interest margin in Slovakia averaged 2.79% from 2000 to 2021.
  • Slovak banks' net interest margins have declined in recent years due to low interest rates.
  • Net interest margins are a key driver of bank profitability and lending capacity.

FAQs

Q: What does this economic trend measure?

A: The bank's net interest margin for Slovakia measures the difference between the average interest rate earned by banks on their loans and investments and the average interest rate paid on their deposits and other borrowings.

Q: Why is this trend relevant for users or analysts?

A: The net interest margin is a crucial indicator of the profitability and efficiency of the banking sector, which is closely monitored by policymakers, regulators, and market analysts to gauge the competitiveness and stability of the financial system.

Q: How is this data collected or calculated?

A: The data is collected and calculated by the World Bank from reports submitted by financial institutions operating in Slovakia.

Q: How is this trend used in economic policy?

A: Policymakers and regulators use this trend to assess the health and performance of the Slovak banking sector, which informs decisions on monetary policy, financial stability, and banking regulations.

Q: Are there update delays or limitations?

A: The data may be subject to reporting delays by financial institutions, and the methodology used by the World Bank could change over time, affecting the comparability of the data.

Related Trends

Citation

U.S. Federal Reserve, Bank's Net Interest Margin for Slovakia (DDEI01SKA156NWDB), retrieved from FRED.