Risk premium on lending in Malawi
Malawi: Risk premium on lending was 21.2% in 2024. ▲ Rising
Risk premium on lending in Malawi, 1983–2024
Source: International Financial Statistics database, International Monetary Fund (IMF). Measured in lending rate minus treasury bill rate, %.
Analysis
Malawi recorded 21.2% for risk premium on lending in 2024.
Compared with earlier readings it is up 6.9% on the previous year and down 10.2% over ten years.
Over the whole period, risk premium on lending in Malawi peaked at 23.6% in 2014 and was at its lowest, 1.0%, in 1995.
Malawi ranks 4th of 86 countries on this measure, in the top 10%.
The long-run direction has been consistently rising across the 42 years of available data.
Risk premium on lending in Malawi, year by year
| Year | lending rate minus treasury bill rate, % | Change |
|---|---|---|
| 1983 | 7.3% | — |
| 1984 | 5.5% | -25.0% |
| 1985 | 6.1% | +10.2% |
| 1986 | 6.2% | +3.1% |
| 1987 | 5.2% | -16.0% |
| 1988 | 6.5% | +23.8% |
| 1989 | 7.2% | +11.5% |
| 1990 | 8.1% | +11.5% |
| 1991 | 8.5% | +5.2% |
| 1992 | 6.4% | -25.0% |
| 1993 | 6.0% | -6.5% |
| 1994 | 3.3% | -44.3% |
| 1995 | 1.0% | -68.9% |
| 1996 | 14.5% | +1302.2% |
| 1997 | 9.9% | -31.4% |
| 1998 | 4.7% | -52.9% |
| 1999 | 10.7% | +128.9% |
| 2000 | 13.6% | +26.8% |
| 2001 | 13.8% | +1.1% |
| 2002 | 8.8% | -36.1% |
| 2003 | 9.6% | +9.7% |
| 2004 | 8.3% | -14.4% |
| 2005 | 8.7% | +5.2% |
| 2006 | 13.0% | +49.4% |
| 2007 | 13.8% | +6.1% |
| 2008 | 14.0% | +1.6% |
| 2009 | 15.1% | +8.0% |
| 2010 | 17.5% | +15.6% |
| 2011 | 17.2% | -1.6% |
| 2012 | 18.0% | +4.8% |
| 2013 | 16.5% | -8.6% |
| 2014 | 23.6% | +43.6% |
| 2015 | 20.5% | -13.3% |
| 2016 | 16.5% | -19.4% |
| 2017 | 19.6% | +18.5% |
| 2018 | 18.7% | -4.6% |
| 2019 | 16.9% | -9.3% |
| 2020 | 15.7% | -7.2% |
| 2021 | 14.2% | -9.9% |
| 2022 | 14.8% | +4.4% |
| 2023 | 19.8% | +34.3% |
| 2024 | 21.2% | +6.9% |
Averages by decade
| Decade | Average | Lowest | Highest | Years |
|---|---|---|---|---|
| 1980s | 6.3% | 5.2% | 7.3% | 7 |
| 1990s | 7.3% | 1.0% | 14.5% | 10 |
| 2000s | 11.9% | 8.3% | 15.1% | 10 |
| 2010s | 18.5% | 16.5% | 23.6% | 10 |
| 2020s | 17.1% | 14.2% | 21.2% | 5 |
Countries ranked near Malawi
- 1 Madagascar 48.7% compare
- 2 Brazil 30.8% compare
- 3 Tajikistan 28.7% compare
- 5 Sierra Leone 19.5% compare
- 6 Lao People's Democratic Republic 14.6% compare
- 7 Mauritania 12.3% compare
More financial sector data for Malawi
- Net domestic credit (current LCU), per capita 362,247 current LCU per person (2024)
- Net domestic credit (current LCU), per unit of GDP 693.47 current LCU per US$ of GDP (2024)
- Net domestic credit (current LCU), annual growth rate 40.48 % change on previous year (2024)
- Gold reserves at 35 SDRs per ounce 449,295 SDR (2014)
- Gold reserves at market value 10.69 million SDR (2014)
- Reserves excluding gold, foreign exchange 405.92 million SDR (2020)
- Reserves excluding gold 412.77 million SDR (2020)
- Total reserves (gold at market value) 412.77 million SDR (2020)
- Total reserves (gold at national valuation) 412.77 million SDR (2020)
- Total reserves (gold at national valuation) (SDR), per capita 21.13 SDR per person (2020)
Frequently asked questions
- What is risk premium on lending in Malawi?
- Risk premium on lending in Malawi was 21.2% in 2024, according to International Financial Statistics database, International Monetary Fund (IMF).
- What is the highest risk premium on lending recorded in Malawi?
- The highest recorded value was 23.6% in 2014.
- What is the lowest risk premium on lending recorded in Malawi?
- The lowest recorded value was 1.0% in 1995.
- How does Malawi rank for risk premium on lending?
- Malawi ranks 4th out of 86 countries with data for 2024.
- Is risk premium on lending rising or falling in Malawi?
- Over the last ten years it is down 10.2%. The long-run trend across the full record is rising.
- Where does this Malawi data come from?
- The figures come from International Financial Statistics database, International Monetary Fund (IMF), published as part of Risk premium on lending (lending rate minus treasury bill rate, %). Statizoid updates them automatically from the source API.
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About this data
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.