Israel's risk premium on lending (lending rate minus treasury bill rate, %) was 1.29% in 2022, the latest year in the World Bank's World Development Indicators. That is down 2.09 percentage points from 3.37% in 2017.
Key figures
| Value | Year | |
|---|---|---|
| Latest | 1.29% | 2022 |
| Five years earlier | 3.37% | 2017 |
| Highest | 3.37% | 2017 |
| Lowest | 1.29% | 2022 |
| Average since 2013 | 3.07% | 2013–2022 |
| First recorded | 3.11% | 2013 |
Over five years it is down 2.09 percentage points from 3.37% in 2017. Since 2013 it is down 1.82 percentage points from 3.11% in 2013.
What the numbers say
In 2022, Israel's risk premium on lending (lending rate minus treasury bill rate, %) fell 1.81 percentage points on 2021 (from 3.1% to 1.29%).
Across the 8 yearly changes before that (2014 to 2021), the average change was −0 percentage points and a typical year strayed about 0.12 percentage points from that (the standard deviation). This year's change was 14.5 standard deviations below that average, so it was unusually large compared with the rest of the record.
On record, the biggest yearly rise was 0.26 percentage points in 2014 and the biggest yearly fall was 1.81 percentage points in 2022. The numbers show how large and when, not why; for the cause, look at what happened in that country in those years.
From 2013 to 2022 the straight-line trend is downward, about 0.12 percentage points a year. A straight line explains 30% of the movement over 10 observed years.
Worked out from the yearly values above. How the checks work: standard deviation, z-scores and straight-line trends.
Closest to Israel in the 2022 ranking
- Barbados — 1st of 2: 7.55%
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 10 values
| Year | Risk premium on lending (lending rate minus treasury bill rate, %) |
|---|---|
| 2022 | 1.29 |
| 2021 | 3.1 |
| 2020 | 3.24 |
| 2019 | 3.27 |
| 2018 | 3.27 |
| 2017 | 3.37 |
| 2016 | 3.3 |
| 2015 | 3.34 |
| 2014 | 3.37 |
| 2013 | 3.11 |
Risk premium on lending (lending rate minus treasury bill rate, %) in nearby economies
- Algeria — 5.29% (2025)
- Egypt, Arab Rep. — -3.44% (2024)
- Lebanon — 6.07% (2019)
- Pakistan — 1.08% (2021)
More financial sector data for Israel
- Domestic credit to private sector by banks (% of GDP) — 72.47% (2025)
- Net foreign assets (current LCU) — 883.57 billion (2025)
- Monetary sector credit to private sector (% of GDP) — 72.47% (2025)
- Broad money (current LCU) — 2.19 trillion (2025)
- Broad money (% of GDP) — 103.73% (2025)
- Broad money to total reserves ratio — 2.76 (2025)
- Consumer price index (2010 = 100) — 126.13 (2025)
- Inflation, consumer prices (annual % growth) — 3.04% (2025)
- Claims on central government, etc. (% of GDP) — 13.18% (2025)
- Domestic credit to private sector (% of GDP)
Reading data like this
Questions people ask
- What is Israel's risk premium on lending (lending rate minus treasury bill rate, %)?
- 1.29% in 2022, according to the World Bank (World Development Indicators).
- How has it changed since 2013?
- It is down 1.82 percentage points from 3.11% in 2013. The highest value was 3.37% in 2017 and the lowest 1.29% in 2022.
- Is the latest change in risk premium on lending (lending rate minus treasury bill rate, %) unusual for Israel?
- In 2022, Israel's risk premium on lending (lending rate minus treasury bill rate, %) fell 1.81 percentage points on 2021 (from 3.1% to 1.29%). Across the 8 yearly changes before that (2014 to 2021), the average change was −0 percentage points and a typical year strayed about 0.12 percentage points from that (the standard deviation). This year's change was 14.5 standard deviations below that average, so it was unusually large compared with the rest of the record.
- Where does this data come from?
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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