Bank Lending Deposit Spread for Philippines

DDEI02PHA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

3.01

Year-over-Year Change

-39.70%

Date Range

1/1/1980 - 1/1/2019

Summary

The Bank Lending Deposit Spread for Philippines measures the difference between banks' lending and deposit interest rates, providing insight into the cost of financial intermediation in the Philippine economy.

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

This economic indicator represents the gap between the interest rate banks charge on loans and the rate they pay on deposits. It serves as a proxy for the efficiency and competitiveness of the Philippine banking sector.

Methodology

The data is collected and reported by the World Bank based on official statistics from the Central Bank of the Philippines.

Historical Context

The bank lending-deposit spread is a key metric used by policymakers and analysts to evaluate the health and development of the Philippine financial system.

Key Facts

  • The average bank lending-deposit spread in the Philippines was 5.1% in 2020.
  • A narrower spread indicates a more efficient and competitive banking sector.
  • The spread has declined from over 6% in the early 2000s due to financial sector reforms.

FAQs

Q: What does this economic trend measure?

A: The Bank Lending Deposit Spread for Philippines measures the difference between the interest rate banks charge on loans and the rate they pay on deposits.

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

A: The lending-deposit spread is a key indicator of the efficiency and competitiveness of the Philippine 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 based on official statistics from the Central Bank of the Philippines.

Q: How is this trend used in economic policy?

A: Policymakers and analysts use the bank lending-deposit spread to evaluate the health and development of the Philippine financial system and inform monetary and regulatory policies.

Q: Are there update delays or limitations?

A: The data is updated annually by the World Bank with a slight delay, and may not capture short-term fluctuations in the lending-deposit spread.

Related Trends

Citation

U.S. Federal Reserve, Bank Lending Deposit Spread for Philippines (DDEI02PHA156NWDB), retrieved from FRED.