Czechia's risk premium on lending (lending rate minus treasury bill rate, %) was 3.06% in 2018, the latest year in the World Bank's World Development Indicators. That is up 0.53 percentage points from 2.53% in 2008.
Key figures
| Value | Year | |
|---|---|---|
| Latest | 3.06% | 2018 |
| Five years earlier | 4.85% | 2013 |
| Ten years earlier | 2.53% | 2008 |
| Highest | 6.66% | 1994 |
| Lowest | -1.34% | 1998 |
| Average since 2009 | 4.37% | 2009–2018 |
| First recorded | 5.73% | 1993 |
What the numbers say
In 2018, Czechia's risk premium on lending (lending rate minus treasury bill rate, %) fell 1.07 percentage points on 2017 (from 4.13% to 3.06%).
Across the 22 yearly changes before that (1994 to 2017), the average change was −0.06 percentage points and a typical year strayed about 1.34 percentage points from that (the standard deviation). This year's change was 0.8 standard deviations below that average, so it was an ordinary year: it sits within the range of normal year-to-year movement.
On record, the biggest yearly rise was 2.8 percentage points in 1999 and the biggest yearly fall was 3.61 percentage points in 1998. The numbers show how large and when, not why; for the cause, look at what happened in that country in those years.
From 2009 to 2018 the straight-line trend is downward, about 0.12 percentage points a year. A straight line explains 38% of the movement over 9 observed years.
Worked out from the yearly values above. How the checks work: standard deviation, z-scores and straight-line trends.
Closest to Czechia in the 2018 ranking
- Antigua and Barbuda — 2nd of 5: 7%
- St. Lucia — 3rd of 5: 6.13%
- Dominica — 4th of 5: 5.96%
What this measures
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.
Limitations: Countries use a variety of reporting formats, sample designs, interest compounding formulas, averaging methods, and data presentations for indices and other data series on interest rates. The IMF's Monetary and Financial Statistics Manual does not provide guidelines beyond the general recommendation that such data should reflect market prices and effective (rather than nominal) interest rates and should be representative of the financial assets and markets to be covered. For more information, please see http://www.imf.org/external/pubs/ft/mfs/manual/index.htm.
All 25 values
| Year | Risk premium on lending (lending rate minus treasury bill rate, %) |
|---|---|
| 2018 | 3.06 |
| 2017 | 4.13 |
| 2016 | 4.16 |
| 2015 | 4.5 |
| 2014 | no data |
| 2013 | 4.85 |
| 2012 | 4.79 |
| 2011 | 4.89 |
| 2010 | 4.94 |
| 2009 | 4.01 |
| 2008 |
Risk premium on lending (lending rate minus treasury bill rate, %) in nearby economies
- Albania — 3.37% (2024)
- Armenia — 5.58% (2025)
- Azerbaijan — 2.22% (2017)
- Georgia — 8.37% (2025)
- Hungary — 1.88% (2025)
- Iceland — 3.14% (2025)
- Italy — 1.31% (2023)
- Kyrgyz Republic — 10.64% (2023)
- Moldova
More financial sector data for Czechia
- DEC alternative conversion factor (LCU per US$) — US$21.88 (2025)
- GDP deflator (base year varies by country) — 132.05 (2025)
- GDP deflator, linked series (base year varies by country) — 132.05 (2025)
- Real effective exchange rate index (2010 = 100) — 123.61 (2025)
- Consumer price index (2010 = 100) — 166.8 (2025)
- Inflation, GDP deflator (annual % growth) — 3.51% (2025)
- Inflation, GDP deflator, linked series (annual % growth) — 3.51% (2025)
- Inflation, consumer prices (annual % growth) — 2.46% (2025)
- Deposit interest rate (%) — 1.6% (2025)
- Lending interest rate (%)
Reading data like this
Questions people ask
- What is Czechia's risk premium on lending (lending rate minus treasury bill rate, %)?
- 3.06% in 2018, according to the World Bank (World Development Indicators).
- How has it changed since 1993?
- It is down 2.67 percentage points from 5.73% in 1993. The highest value was 6.66% in 1994 and the lowest -1.34% in 1998.
- Is the latest change in risk premium on lending (lending rate minus treasury bill rate, %) unusual for Czechia?
- In 2018, Czechia's risk premium on lending (lending rate minus treasury bill rate, %) fell 1.07 percentage points on 2017 (from 4.13% to 3.06%). Across the 22 yearly changes before that (1994 to 2017), the average change was −0.06 percentage points and a typical year strayed about 1.34 percentage points from that (the standard deviation). This year's change was 0.8 standard deviations below that average, so it was an ordinary year: it sits within the range of normal year-to-year movement.
Source
World Bank, World Development Indicators, indicator FR.INR.RISK, licensed CC BY 4.0. Original source: International Financial Statistics database, International Monetary Fund (IMF) Figures are fetched from the World Bank API and refreshed monthly; see the series on data.worldbank.org. The full definition and method are in the World Bank's metadata glossary. Comparisons use the same World Bank release.
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