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Interest Rates on Bank Deposits and Loans: July 2020

02/09/2020 - Press Releases

 

1. INTEREST RATES ON EURO-DENOMINATED NEW DEPOSITS AND LOANS

In July 2020, the overall weighted average interest rate on new deposits remained almost unchanged, while the corresponding rate on new loans increased. The spread between loan and deposit rates also increased to 3.97 percentage points (see Table 1).

New Deposits

The overall weighted average interest rate on all new deposits remained almost unchanged at 0.11%.

In particular, the average interest rate on overnight deposits placed by households remained unchanged at 0.05%, while the corresponding rate on deposits placed by non-financial corporations remained almost unchanged at 0.08%. The average interest rate on deposits from households with an agreed maturity of up to 1 year remained, also, almost unchanged at 0.25%.

New Loans                                                                                                           

The overall weighted average interest rate on all new loans to households and non-financial corporations increased by 3 basis points to 4.08%.

More specifically, the average interest rate on consumer loans without a defined maturity (a category which comprises credit cards, open account loans and overdrafts) decreased by 4 basis points to 14.36%.

The average interest rate on consumer loans with a defined maturity at a floating rate decreased by 26 basis points to 10.75%. The average interest rate on housing loans at a floating rate decreased by 6 basis points to 2.53%.

The average interest rate on corporate loans without a defined maturity decreased by 4 basis points to 4.53%. The corresponding rate on loans to sole proprietors also decreased by 4 basis points to 6.74% from the previous month.   

The average interest rate on corporate loans with a defined maturity at a floating rate increased by 7 basis points to 2.95%, in July 2020, whereas the volume of new business increased to €2,773 million from €1,347 million in the previous month. It should be noted that the increase in the average interest rate is not due to the increase of individual interest rates but to the significant increase of the market share of small loans that have relatively higher interest rates. More specifically, the interest rate on loans with a defined maturity at a floating rate to small and medium-sized enterprises (SMEs) increased to 3.59% from 3.44% in the previous month, whereas the corresponding volume of new business increased to €1,140 million from €320 million in the previous month (see Chart and Table 1).

 

As regards to the structure of interest rates according to the size of the loans granted, the rate on loans of up to €250,000 decreased by 25 basis points to 4.31%, on loans of over €250,000 and up to €1 million decreased by 17 basis points to 3.22%, and the rate on loans of over €1 million also decreased by 10 basis points to 2.65%.


 

2. INTEREST RATES ON OUTSTANDING AMOUNTS OF EURO-DENOMINATED DEPOSITS AND LOANS

In July 2020, the overall weighted average interest rate on outstanding amounts of all deposits remained almost unchanged, while the corresponding rate on the outstanding amounts of loans decreased. The spread between loan and deposit rates also decreased to 3.69 percentage points (see Table 2).

Outstanding Deposits                                                                                                       

The overall weighted average interest rate on outstanding amounts of all deposits (including overnight deposits) remained almost unchanged at 0.12%.

The average interest rate on outstanding amounts of deposits with an agreed maturity of up to 2 years placed by households decreased to 0.28% from 0.31% in the previous month; the corresponding rate on deposits placed by non-financial corporations decreased to 0.24% from 0.28% in the previous month. 

Outstanding Loans

The overall weighted average interest rate on outstanding amounts of all loans decreased by 4 basis points to 3.81%.

In particular, the average interest rate on outstanding amounts of housing loans with over 5 years’ maturity remained almost unchanged at 2.01%. The average interest rate on outstanding amounts of consumer and other loans to individuals and private non-profit institutions with over 5 years’ maturity decreased by 3 basis points to 6.43%; the corresponding rate on corporate loans decreased to 3.31% from 3.34% in the previous month. The average interest rate on outstanding amounts of loans to sole proprietors with over 5 years’ maturity increased by 4 basis points to 4.27%.

 

Table 1: Average interest rates on new euro-denominated deposits and loans (percentages per annum)


 


 

May 2020

June 2020

July 2020

DEPOSITS

Overnight from households

0.05

0.05

0.05

Overnight from non-financial corporations

0.10

0.10

0.08

From households with an agreed maturity of up to 1 year

0.28

0.26

0.25

Overall weighted average rate on all deposits

0.13

0.12

0.11

LOANS

Consumer without a defined maturity

14.53

14.40

14.36

Corporate without a defined maturity

4.56

4.57

4.53

To sole proprietors without a defined maturity

6.81

6.78

6.74

Housing at a floating rate

2.66

2.59

2.53

Consumer with a defined maturity at a floating rate

11.82

11.01

10.75

Corporate with a defined maturity at a floating rate:

2.87

2.88

2.95

-amounts of up to €250,000

4.54

4.56

4.31

-amounts of over €250,000 and up to €1 million

3.44

3.39

3.22

-amounts of over €1 million

2.77

2.75

2.65

Loans with a defined maturity to small and medium-sized enterprises at a floating rate

3.40

3.44

3.59

Overall weighted average rate on all loans

4.23

4.05

4.08

Interest rate spread

4.10

3.93

3.97


 

Table 2: Average interest rates on outstanding amounts of euro-denominated deposits and loans (percentages per annum)


 


 

May 2020

June 2020

July 2020

DEPOSITS

From households with an agreed maturity of up to 2 years

0.33

0.31

0.28

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

0.31

0.28

0.24

Overall weighted average rate on all deposits

0.14

0.13

0.12

LOANS

Housing with over 5 years’ maturity

2.03

2.02

2.01

Consumer and other loans to individuals and private non-profit institutions with over 5 years’ maturity

6.24

6.46

6.43

Corporate with over 5 years’ maturity

3.37

3.34

3.31

To sole proprietors with over 5 years’ maturity

4.23

4.23

4.27

Overall weighted average rate on all loans

3.86

3.85

3.81

Interest rate spread

3.72

3.72

3.69

The complete data set of bank deposit and loan interest rates is published in the sub-section Bank deposit and loan interest rates on the Bank of Greece website.

 

Notes:

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

- For the calculation of the overall weighted average interest rate on all outstanding deposits the overnight deposits are also taken into account.

- Loans at a floating rate comprise also loans with an initial rate fixation period of up to one year.

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

 

The next Press Release on “Interest Rates on Bank Deposits and Loans” for August 2020 will be published on 1 October 2020, according to the Release calendar, as published on the Bank of Greece website.


 


 


 


 

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