The Relationship of Government Effectiveness and Level of Economic Development with Bank Spread in Different Countries

The aim of this study was to investigate the relationship between the level of economic development, government effectiveness, and variations in financial intermediation spreads in 157 countries during the period from 2015 to 2021. The sample comprised countries from six different regions: Africa (43 countries), Asia (43 countries), Europe (42 countries), North America (15 countries), Oceania (3 countries), and South America (11 countries). These countries were categorized based on their levels of economic development, as defined by the International Monetary Fund (IMF). Banking spreads were determined as the difference between lending rates and deposit rates. Government effectiveness was assessed using