Bank Lending Deposit Spread for Papua New Guinea

DDEI02PGA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

7.77

Year-over-Year Change

-10.85%

Date Range

1/1/1983 - 1/1/2019

Summary

The Bank Lending Deposit Spread for Papua New Guinea measures the difference between the lending and deposit interest rates in the country. This metric is a key indicator of the efficiency and competitiveness of the domestic 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 represents the difference between the average interest rate charged on loans and the average interest rate paid on deposits by commercial banks. This spread is a closely watched metric that provides insight into the profitability, competition, and efficiency of the local financial system.

Methodology

The data is collected and reported by the World Bank's World Development Indicators program.

Historical Context

Policymakers and analysts use this trend to assess the health and development of Papua New Guinea's banking sector and its impact on economic growth.

Key Facts

  • Papua New Guinea's bank lending deposit spread averaged 7.8% from 2010-2020.
  • A wider spread indicates less competition and efficiency in the banking sector.
  • Reducing the spread is a policy goal to promote financial inclusion and lower borrowing costs.

FAQs

Q: What does this economic trend measure?

A: The Bank Lending Deposit Spread for Papua New Guinea measures the difference between the average interest rate charged on loans and the average interest rate paid on deposits by commercial banks in the country.

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

A: This metric provides insight into the profitability, competition, and efficiency of Papua New Guinea's banking sector, which is crucial for economic growth and development.

Q: How is this data collected or calculated?

A: The data is collected and reported by the World Bank's World Development Indicators program.

Q: How is this trend used in economic policy?

A: Policymakers and analysts use this trend to assess the health and development of Papua New Guinea's banking sector and its impact on economic growth, with the goal of reducing the spread to promote financial inclusion and lower borrowing costs.

Q: Are there update delays or limitations?

A: The World Bank publishes this data annually, so there may be a delay of up to a year in the most recent figures being available.

Related Trends

Citation

U.S. Federal Reserve, Bank Lending Deposit Spread for Papua New Guinea (DDEI02PGA156NWDB), retrieved from FRED.