Malawi - Risk premium on lending

Risk premium on lending (lending rate minus treasury bill rate, %)

The value for Risk premium on lending (lending rate minus treasury bill rate, %) in Malawi was 15.71 as of 2020. As the graph below shows, over the past 37 years this indicator reached a maximum value of 23.63 in 2014 and a minimum value of 1.03 in 1995.

Definition: Risk premium on lending is the interest rate charged by banks on loans to private sector customers minus the "risk free" treasury bill interest rate at which short-term government securities are issued or traded in the market. In some countries this spread may be negative, indicating that the market considers its best corporate clients to be lower risk than the government. The terms and conditions attached to lending rates differ by country, however, limiting their comparability.

Source: International Monetary Fund, International Financial Statistics database.

See also:

Year Value
1983 7.33
1984 5.50
1985 6.06
1986 6.25
1987 5.25
1988 6.50
1989 7.25
1990 8.08
1991 8.50
1992 6.38
1993 5.96
1994 3.32
1995 1.03
1996 14.50
1997 9.94
1998 4.69
1999 10.73
2000 13.61
2001 13.75
2002 8.79
2003 9.65
2004 8.26
2005 8.68
2006 12.98
2007 13.77
2008 13.99
2009 15.10
2010 17.46
2011 17.19
2012 18.00
2013 16.45
2014 23.63
2015 20.49
2016 16.52
2017 19.58
2018 18.68
2019 16.94
2020 15.71

Classification

Topic: Financial Sector Indicators

Sub-Topic: Interest rates