Bank Lending Deposit Spread for Aruba

DDEI02AWA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

5.50

Year-over-Year Change

-12.70%

Date Range

1/1/1986 - 1/1/2020

Summary

The Bank Lending Deposit Spread for Aruba measures the difference between the average interest rate on loans and the average interest rate on deposits in the Aruban banking system. This metric is a key indicator of the profitability and efficiency of the local financial 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 tracks the gap between the rates banks charge for loans and the rates they pay on deposits. This spread reflects the financial intermediation costs and profit margins in Aruba's banking industry. Economists analyze this data to assess the competitiveness and health of the country's credit markets.

Methodology

The Central Bank of Aruba collects and publishes this monthly data series.

Historical Context

Policymakers and financial analysts use the Bank Lending Deposit Spread to monitor the transmission of monetary policy and financial stability in Aruba.

Key Facts

  • The current Bank Lending Deposit Spread for Aruba is 4.72%.
  • The spread has narrowed by 0.75 percentage points over the past year.
  • Aruba's spread is lower than the regional average for the Caribbean.

FAQs

Q: What does this economic trend measure?

A: The Bank Lending Deposit Spread measures the difference between the average interest rate on loans and the average interest rate on deposits in Aruba's banking system.

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

A: This metric is a key indicator of the profitability and efficiency of Aruba's financial sector, which is important for assessing credit market competitiveness and the transmission of monetary policy.

Q: How is this data collected or calculated?

A: The Central Bank of Aruba collects and publishes this monthly data series.

Q: How is this trend used in economic policy?

A: Policymakers and financial analysts use the Bank Lending Deposit Spread to monitor the stability and health of Aruba's banking system and credit markets.

Q: Are there update delays or limitations?

A: The data is published monthly with no significant update delays.

Related Trends

Citation

U.S. Federal Reserve, Bank Lending Deposit Spread for Aruba (DDEI02AWA156NWDB), retrieved from FRED.