Bank Lending Deposit Spread for Australia
DDEI02AUA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
3.54
Year-over-Year Change
-3.38%
Date Range
1/1/1987 - 1/1/2019
Summary
The Bank Lending Deposit Spread for Australia measures the difference between the interest rate banks charge on loans and the rate they pay on deposits. This metric provides insight into the profitability and competitiveness of the Australian 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 bank lending deposit spread is the difference between the average interest rate on loans made by banks and the average rate paid on bank deposits. This spread reflects the profit margin banks earn on their lending activities and is a key indicator of banking sector health and competition.
Methodology
The data is collected and calculated by the World Bank based on official statistics from the Reserve Bank of Australia.
Historical Context
Policymakers and analysts use this spread to assess the efficiency and competitiveness of the Australian banking system.
Key Facts
- The spread has averaged 3.14 percentage points over the past decade.
- Wider spreads indicate less competition in the banking sector.
- The spread is influenced by factors like market concentration and central bank policy.
FAQs
Q: What does this economic trend measure?
A: The Bank Lending Deposit Spread for Australia measures the difference between the average interest rate banks charge on loans and the average rate they pay on deposits.
Q: Why is this trend relevant for users or analysts?
A: This spread reflects the profitability and competitiveness of the Australian banking sector, which is of interest to policymakers, investors, and economic analysts.
Q: How is this data collected or calculated?
A: The data is collected and calculated by the World Bank based on official statistics from the Reserve Bank of Australia.
Q: How is this trend used in economic policy?
A: Policymakers and analysts use this spread to assess the efficiency and competitiveness of the Australian banking system, which can inform decisions on financial regulation and monetary policy.
Q: Are there update delays or limitations?
A: The data is published with a lag, and may not capture the most recent changes in the banking sector.
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Citation
U.S. Federal Reserve, Bank Lending Deposit Spread for Australia (DDEI02AUA156NWDB), retrieved from FRED.