The average bank interest rate in Vanuatu has shown a steady decline over the past two decades, dropping from 11.6% in 2002 to 8.6% in 2024. This downward trend reflects improved monetary conditions and greater financial sector stability. The indicator is well below the 2030 policy target of 15%, suggesting enhanced affordability and accessibility of financial services. Continued monitoring will help ensure that credit remains available while supporting broader goals of inclusive economic growth.

My progress target: 2021 - Cloudy

Sub-categories

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Headline data

Interest Rate level (average bank rate)
Year Value
2002 11.6
2003 11.7
2004 11.7
2005 11.4
2006 11.3
2007 10.3
2008 10.3
2009 10.9
2010 11.0
2011 10.3
2012 9.4
2013 10.5
2014 10.3
2015 10.0
2016 9.9
2017 10.3
2018 10.0
2019 9.9
2020 9.5
2021 9.4
2022 9.0
2023 8.8
2024 8.6

Source:

Geographical Area: Vanuatu

Unit of Measurement: Percentage

Footnote:

This table provides metadata for the actual indicator available from Vanuatu statistics closest to the corresponding global SDG indicator. Please note that even when the global SDG indicator is fully available from Vanuatuan statistics, this table should be consulted for information on national methodology and other Vanuatu-specific metadata information.

Proxy

No
Definition

The “Interest Rate Level (Average Bank Rate)” indicator measures the average interest rate set by commercial banks for loans and deposits within a country over a specific period, typically expressed as an annual percentage rate (APR). This rate reflects the cost of borrowing money from banks and the return on savings or deposits made with banks.
Concept

This indicator tracks the general level of interest rates within the banking sector, providing an average of the rates applied by banks to their lending and deposit-taking activities. The average bank rate is a critical component of a country’s monetary policy environment and influences the overall cost of credit, investment decisions, and savings behaviour. It includes rates for various financial products, such as personal loans, mortgages, and savings accounts.
Disaggregation

Bank
Rationale

Monitoring the average bank interest rate level is essential for understanding the monetary conditions within an economy. Interest rates directly impact consumer spending, business investment, inflation, and economic growth. Higher interest rates typically reduce borrowing and spending, while lower rates encourage them.
Method of Computation

To compute the “Interest Rate Level (Average Bank Rate),” first collect interest rate data from a representative sample of commercial banks within the country, including rates for various types of loans and deposits. Then, calculate the average bank rate by summing the interest rates from the selected banks and dividing by the number of banks in the sample. If detailed data is available, compute a weighted average by considering the volume of loans or deposits associated with each rate.

Formula: Average Bank Rate= (Total Interest Rates from Selected Banks/Number of Banks in Sample)
Sustainable Development Goal Indicator Alignment

8.10.1 & 8.10.2
Unit of Measurement

Percentage
Frequency of Collection

Quarterly
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