Group of 7 countries (G7) Compared by Economy > Financial sector > Interest rates > Risk premium on lending > Prime rate minus treasury bill rate
DEFINITION:
Risk premium on lending is the interest rate charged by banks on loans to prime 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.".
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