BANK OF GREECE-Interest rate on bank deposits and loans: October 2021


The weighted average interest rate on new deposits remained unchanged at 0.05% in October 2021, while the weighted average interest rate on new loans rose to 3.94%.

The interest rate differential between new deposits and loans widened to 3.89 percentage points.

The weighted average interest rate on outstanding deposits remained unchanged at 0.04%, while the weighted average interest rate on outstanding loans decreased to 3.51%.

The interest rate differential between outstanding deposits and loans narrowed to 3.47 percentage points.

1.	Interest rates on euro-denominated new deposits and loans

New deposits

The weighted average interest rate on new deposits remained unchanged at 0.05%.

In particular, the average interest rate on sight deposits placed by households remained unchanged at 0.03%, while the corresponding rate on deposits of non-financial corporations remained virtually unchanged at 0.00%. The average interest rate on household deposits with a maturity of 1 year or less remained unchanged at 0.14% compared to the previous month.

New loans

The weighted average interest rate on new loans to households and non-financial corporations rose 17 basis points to 3.94%.

Specifically, the average interest rate on consumer loans with no fixed maturity (a category that includes credit cards, revolving loans and overdrafts) increased by 20 basis points to 14.48%.

The average interest rate on fixed-term, variable-rate consumer loans increased by 10 basis points to 11.39%. The average interest rate on variable rate home loans also increased by 10 basis points to 2.43%.

The average interest rate on new business loans with no fixed maturity fell 12 basis points to 4.13%, while the corresponding rate on unincorporated business loans was unchanged at 6.49%.

In October 2021, the average interest rate on fixed-term, variable-rate business loans rose 34 basis points to 2.85% from 2.51% the previous month. The interest rate on fixed-term and variable-rate loans to small and medium-sized enterprises (SMEs) fell to 3.16% from 3.24% the previous month.

Regarding the structure of interest rates according to the size of the loans granted, the rate of loans up to 250,000 euros remained virtually unchanged at 4.36%, on loans of more than 250,000 euros and up to 1 million euros increased by 8 basis points to 3.36%, while on loans over 1 million euros it rose 32 basis points to 2.73%.

2.	Interest rates on outstanding amounts of euro-denominated deposits and loans

Deposits

The weighted average interest rate on outstanding deposits (including demand deposits) remained unchanged at 0.04%.

In particular, the average interest rate on the outstanding deposits of two years or less placed by households remained virtually unchanged at 0.10%, while the corresponding rate on deposits from non-member companies. Financials remained unchanged at 0.07%.

Loans

The weighted average interest rate on outstanding loans fell by 6 basis points to 3.51%.

In particular, the average interest rate on outstanding home loans with more than 5 years fell by 10 basis points to 1.92%. The average interest rate on outstanding consumer loans and other loans to individuals and private non-profit institutions with a maturity of more than 5 years decreased by 21 basis points to 6.40%; the corresponding rates on loans to businesses and loans to individuals remained virtually unchanged at 3.10% and 4.29% respectively.

Table 1: Average interest rates on new deposits and loans in euros (percentages per year)

August

2021

September 2021

October 2021

DEPOSITS

Household overnight

0.03

0.03

0.03

Day-to-day non-financial corporations

0.01

0.01

0.00

Households with an agreed maturity of up to 1 year

0.16

0.14

0.14

Weighted average rate on all deposits

0.05

0.05

0.05

LOANS

Consumer without defined maturity

14.32

14.28

14.48

Company with no defined deadline

4.25

4.25

4.13

To sole proprietorships with no defined deadline

6.53

6.49

6.49

Variable rate housing

2.35

2.33

2.43

Fixed-term consumer at variable rate

12.03

11.29

11.39

Corporate with defined maturity at variable rate:

3.22

2.51

2.85

amounts up to 250,000 euros

4.31

4.35

4.36

more amounts 250,000 euros and up to 1 million euros

3.35

3.28

3.36

more amounts 1 million euros

3.15

2.41

2.73

Fixed-term loans to small and medium-sized businesses at variable rates

3.30

3.24

3.16

Weighted average rate on all loans

4.14

3.77

3.94

Interest rate spread

4.09

3.72

3.89

Table 2: Average interest rates on outstanding deposits and loans in euros (percentages per year)

August

2021

September 2021

October 2021

DEPOSITS

From households with an agreed maturity of up to 2 years

0.11

0.11

0.10

From non-financial companies with an agreed maturity of up to 2 years

0.08

0.07

0.07

Weighted average rate on all deposits

0.05

0.04

0.04

LOANS

Housing with a maturity of more than 5 years

2.02

2.02

1.92

Consumer loans and other loans to individuals and private non-profit institutions with a duration of more than 5 years

6.57

6.61

6.40

Company with a maturity of more than 5 years

3.14

3.12

3.10

To sole proprietorships over 5 years old

4.29

4.30

4.29

Weighted average rate on all loans

3.59

3.57

3.51

Interest rate spread

3.54

3.53

3.47

Remarks:

The interest rate spread is the difference between the weighted average rate on all loans and the weighted average rate on all deposits.

For the calculation of the weighted average interest rate on all outstanding deposits, demand deposits are also taken into account.

Variable rate loans also include loans with an initial rate fixation period of up to one year.

New business refers to new contracts that were entered into during the reference month and not to actual loan disbursements.

Associated information:

The full data set on bank deposit and loan interest rates is published in the subsection Bank deposit and loan interest rates subsection. Bank of Greece website.

The next press release for November 2021 will be published on January 5, 2022, according to the release schedule, as published on the Bank of Greece website.


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