dc.contributor.author	Feyen, Erik
dc.contributor.author	Zuccardi Huertas, Igor
dc.date.accessioned	2020-09-17T20:04:47Z
dc.date.available	2020-09-17T20:04:47Z
dc.date.issued	2020-09
dc.description.abstract	This paper analyzes the main trends and patterns of nominal lending interest rates and lending-deposit interest rate spreads in emerging markets and developing economies. Using data from 140 emerging markets and developing economies, analysis shows that nominal lending rates and spreads declined between 2003 and 2017, with regional heterogeneity. In addition, it finds that less economically and financially developed countries tend to exhibit higher lending rates and spreads. These higher rates tend to be driven by higher spreads, not deposit interest rates. Also, illustrative regressions suggest that relevant correlates of nominal lending rates include inflation, public debt, and policy interest rate (macro-fiscal conditions); overhead costs, nonperforming loans, and non-interest income (banking characteristics); and credit bureau coverage and time to resolve insolvency (business environment). Finally, illustrative decompositions of the level and 10-year change between 2007 and 2017 of nominal lending rates find relative differences across regions. On the decline of nominal interest rates in that decade, rising public debt and nonperforming loans have pushed rates up, which was counterbalanced by a reduction in inflation, the policy interest rate, and overhead costs and a better business environment. Since the global financial crisis, a common global factor has increased in importance and has contributed to the downward trend in nominal lending rates.	en
dc.identifier	http://documents.worldbank.org/curated/en/993931599674780457/Bank-Lending-Rates-and-Spreads-in-EMDEs-Evolution-Drivers-and-Policies
dc.identifier.doi	10.1596/1813-9450-9392
dc.identifier.uri	https://hdl.handle.net/10986/34478
dc.language	English
dc.publisher	World Bank, Washington, DC
dc.relation.ispartofseries	Policy Research Working Paper;No. 9392
dc.rights	CC BY 3.0 IGO
dc.rights.holder	World Bank
dc.rights.uri	http://creativecommons.org/licenses/by/3.0/igo
dc.subject	LENDING RATES
dc.subject	SPREADS
dc.subject	EMERGING MARKET ECONOMIES
dc.subject	INTEREST SPREAD
dc.title	Bank Lending Rates and Spreads in EMDEs	en
dc.title.subtitle	Evolution, Drivers, and Policies	en
dc.type	Working Paper	en
dc.type	Document de travail	fr
dc.type	Documento de trabajo	es
dspace.entity.type	Publication
okr.crossref.title	Bank Lending Rates and Spreads in Emdes : Evolution, Drivers, and Policies
okr.date.disclosure	2020-09-09
okr.doctype	Publications & Research
okr.doctype	Publications & Research::Policy Research Working Paper
okr.docurl	http://documents.worldbank.org/curated/en/993931599674780457/Bank-Lending-Rates-and-Spreads-in-EMDEs-Evolution-Drivers-and-Policies
okr.guid	993931599674780457
okr.identifier.doi	10.1596/1813-9450-9392
okr.identifier.externaldocumentum	090224b087d90731_1_0
okr.identifier.internaldocumentum	32390752
okr.identifier.report	WPS9392
okr.imported	true	en
okr.language.supported	en
okr.pdfurl	http://documents.worldbank.org/curated/en/993931599674780457/pdf/Bank-Lending-Rates-and-Spreads-in-EMDEs-Evolution-Drivers-and-Policies.pdf	en
okr.statistics.combined	7011
okr.statistics.dr	993931599674780457
okr.statistics.drstats	5668
okr.topic	Finance and Financial Sector Development::Banks & Banking Reform
okr.topic	Finance and Financial Sector Development::Capital Markets and Capital Flows
okr.topic	Macroeconomics and Economic Growth::Inflation
okr.unit	Finance, Competitiveness and Innovation Global Practice
relation.isSeriesOfPublication	26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery	26e071dc-b0bf-409c-b982-df2970295c87

Publication: Bank Lending Rates and Spreads in EMDEs: Evolution, Drivers, and Policies

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Bank Lending Rates and Spreads in EMDEs: Evolution, Drivers, and Policies