## Interest Rate Spreads in English-Speaking African Countries

_IMF Working Papers, April 1, 2007_

## Source details

**Canonical URL:** [Interest Rate Spreads in English-Speaking African Countries](https://www.imf.org/en/publications/wp/issues/2016/12/31/interest-rate-spreads-in-english-speaking-african-countries-20629)

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## Bibliographic details
- Authors: Joe Crowley
- Published: April 1, 2007
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451866650.001

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### Summary findings
- The paper examines interest rate spreads in English-speaking African countries.
- Higher spreads were found to be associated with lower inflation, a greater number of banks, and greater public ownership of banks.
- Higher deposit interest rates were found to be associated with lower interest rate spreads, but higher net interest margins.
- A large increase in spreads in the late 1980s and 1990s may be explained by a strengthening of financial sector supervision.
- Limited data suggested that poor governance, weak regulatory frameworks and property rights, and higher required reserve ratios are associated with higher spreads.

### Empirical associations and metrics reported
- Associations reported (qualitative as stated):
  - Higher spreads ↔ lower inflation.
  - Higher spreads ↔ greater number of banks.
  - Higher spreads ↔ greater public ownership of banks.
  - Higher deposit interest rates ↔ lower interest rate spreads.
  - Higher deposit interest rates ↔ higher net interest margins.
  - Increase in spreads in the late 1980s and 1990s ↔ strengthening of financial sector supervision.
  - Limited-data associations: poor governance, weak regulatory frameworks and property rights, and higher required reserve ratios ↔ higher spreads.

### Publication and metadata
- Author: Joe Crowley
- Publication date: April 1, 2007
- Series: Working Paper No. 2007/101
- Issue: 101
- Volume: 2007
- Pages: 34
- DOI: https://doi.org/10.5089/9781451866650.001
- Stock No: WPIEA2007101
- ISBN: 9781451866650
- ISSN: 1018-5941
- Subject: Banking, Commercial banks, Deposit rates, Inflation, Personal income
- Keywords: adjusted interest rate, deposit rate, interest income, interest rate spread, lending rate, WP

*IMF Working Papers. "Interest Rate Spreads in English-Speaking African Countries" by Joe Crowley, April 1, 2007.*

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/interest-rate-spreads-in-english-speaking-african-countries-20629_