Risk premium on lending (lending rate minus treasury bill rate, %) in United Kingdom
United Kingdom: Risk premium on lending (lending rate minus treasury bill rate, %) was 0.1% in 2014. ◆ Volatile
Risk premium on lending in United Kingdom, 1967–2014
Source: International Financial Statistics database, International Monetary Fund (IMF). Measured in lending rate minus treasury bill rate, %.
Analysis
The most recent figure for risk premium on lending in United Kingdom is 0.1%, measured in 2014.
That represents a change of down 39.6% on the previous year and up 340.2% over ten years.
Over the whole period, risk premium on lending in United Kingdom peaked at 2.0% in 1972 and was at its lowest, -2.4%, in 1974.
United Kingdom ranks 79th of 86 countries on this measure, in the bottom quarter.
The series is highly variable year to year, so single readings are best treated with caution.
Risk premium on lending (lending rate minus treasury bill rate, %) in United Kingdom, year by year
| Year | lending rate minus treasury bill rate, % | Change |
|---|---|---|
| 1967 | -0.3% | — |
| 1968 | -1.0% | +201.6% |
| 1969 | -1.0% | +5.2% |
| 1970 | 0.2% | -122.7% |
| 1971 | 1.9% | +732.1% |
| 1972 | 2.0% | +3.9% |
| 1973 | -1.3% | -164.8% |
| 1974 | -2.4% | +83.4% |
| 1975 | 0.3% | -112.4% |
| 1976 | -0.1% | -118.7% |
| 1977 | 1.3% | -2373.2% |
| 1978 | 0.6% | -53.1% |
| 1979 | 0.7% | +18.2% |
| 1980 | 1.2% | +71.6% |
| 1981 | 0.3% | -77.6% |
| 1982 | 0.6% | +107.0% |
| 1983 | 0.2% | -57.2% |
| 1984 | 0.4% | +60.8% |
| 1985 | 0.7% | +72.1% |
| 1986 | 0.6% | -13.7% |
| 1987 | 0.5% | -10.6% |
| 1988 | 0.3% | -41.0% |
| 1989 | 0.6% | +88.7% |
| 1990 | 0.7% | +20.1% |
| 1991 | 0.9% | +29.4% |
| 1992 | 0.6% | -28.2% |
| 1993 | 0.8% | +27.7% |
| 1994 | 0.3% | -61.4% |
| 1995 | 0.4% | +19.1% |
| 1996 | 0.2% | -50.6% |
| 1997 | 0.1% | -55.1% |
| 1998 | 0.4% | +399.9% |
| 1999 | 0.3% | -24.7% |
| 2000 | 0.2% | -46.9% |
| 2001 | 0.4% | +119.8% |
| 2002 | 0.1% | -61.7% |
| 2003 | 0.1% | +2.8% |
| 2004 | -0.0% | -135.4% |
| 2005 | 0.1% | -295.4% |
| 2006 | -0.0% | -110.1% |
| 2007 | -0.0% | +57.5% |
| 2008 | 0.4% | -2482.2% |
| 2009 | 0.1% | -68.1% |
| 2010 | 0.0% | -96.9% |
| 2011 | 0.0% | +284.8% |
| 2012 | 0.2% | +1223.6% |
| 2013 | 0.2% | +6.0% |
| 2014 | 0.1% | -39.6% |
United Kingdom compared with similar countries
- United Kingdom's 0.1% is below the median for high income countries, which is 2.9%, 4% of the median. (26 countries reporting)
- United Kingdom's 0.1% is below the median for Europe & Central Asia, which is 3.1%, 4% of the median. (19 countries reporting)
Biggest year-on-year movements
Years where Risk premium on lending (lending rate minus treasury bill rate, %) in United Kingdom changed far more than this series normally does. A large move can be a real event or a change in how the figure was measured — the source note below says who published it.
| Year | Change | From | To |
|---|---|---|---|
| 2008 | +2482.2% | -0.0% | 0.4% |
| 1977 | +2373.2% | -0.1% | 1.3% |
| 2012 | +1223.6% | 0.0% | 0.2% |
| 1971 | +732.1% | 0.2% | 1.9% |
Averages by decade
| Decade | Average | Lowest | Highest | Years |
|---|---|---|---|---|
| 1960s | -0.8% | -1.0% | -0.3% | 3 |
| 1970s | 0.3% | -2.4% | 2.0% | 10 |
| 1980s | 0.5% | 0.2% | 1.2% | 10 |
| 1990s | 0.5% | 0.1% | 0.9% | 10 |
| 2000s | 0.1% | -0.0% | 0.4% | 10 |
| 2010s | 0.1% | 0.0% | 0.2% | 5 |
Countries ranked near United Kingdom
More financial sector data for United Kingdom
- Reserve position in the IMF, US dollar, annual growth rate 10.56 % change on previous year (2025)
- Reserve position in the IMF, US dollar, per unit of GDP 0.0018 units per US$ of GDP (2025)
- Reserve position in the IMF, US dollar, per capita 104.99 units per person (2025)
- Reserve position in the IMF, SDR, annual growth rate 5.29 % change on previous year (2025)
- Reserve position in the IMF, SDR, per unit of GDP 0.0013 units per US$ of GDP (2025)
- Reserve position in the IMF, SDR, per capita 76.66 units per person (2025)
- Reserve tranche position, US dollar, annual growth rate 10.56 % change on previous year (2025)
- Reserve tranche position, US dollar, per unit of GDP 0.0018 units per US$ of GDP (2025)
- Reserve tranche position, US dollar, per capita 104.99 units per person (2025)
- Reserve tranche position, SDR, annual growth rate 5.29 % change on previous year (2025)
Frequently asked questions
- What is risk premium on lending in United Kingdom?
- Risk premium on lending in United Kingdom was 0.1% in 2014, according to International Financial Statistics database, International Monetary Fund (IMF).
- What is the highest risk premium on lending recorded in United Kingdom?
- The highest recorded value was 2.0% in 1972.
- What is the lowest risk premium on lending recorded in United Kingdom?
- The lowest recorded value was -2.4% in 1974.
- How does United Kingdom rank for risk premium on lending?
- United Kingdom ranks 79th out of 86 countries with data for 2014.
- Is risk premium on lending rising or falling in United Kingdom?
- Over the last ten years it is up 340.2%. The long-run trend across the full record is volatile.
- Where does this United Kingdom 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.