Interest Rates on Bank Deposits and Loans: December 2016
02/02/2017 - Press Releases
1. INTEREST RATES ON EURO-DENOMINATED NEW DEPOSITS AND LOANS
In December 2016, the overall weighted average interest rate on new deposits marginally decreased, while the average interest rate on new loans remained almost unchanged. The interest rate spread* between loan and deposit rates increased to 4.53 percentage points, compared with 4.48 points in the previous month (see Table 1).
The overall weighted average interest rate on all new deposits marginally decreased by 3 basis points to 0.32%. In particular, the average interest rate on overnight deposits placed by households remained almost unchanged at 0.10%. The average interest rate on overnight deposits placed by non-financial corporations decreased by 4 basis points to 0.13%. The average interest rate on deposits from households with an agreed maturity of up to 1 year remained almost unchanged at 0.70%.
The overall weighted average interest rate on all new loans to households and corporations remained almost unchanged at 4.85%, in December 2016.
More specifically, the average interest rate on consumer loans without a defined maturity (a category which comprises credit cards, open account loans and overdrafts) marginally increased by 3 basis points to 14.51%. The average interest rate on consumer loans with a defined maturity at a floating rate (1) decreased by 149 basis points to 6.47%.
The average interest rate on corporate loans without a defined maturity decreased by 5 basis points to 5.65%. The corresponding rate on loans to sole proprietors remained almost unchanged at 7.34%. The average interest rate on corporate loans with a defined maturity at a floating rate (1) increased by 6 basis points to 4.67%. In particular, the rate on loans of up to €250,000 decreased by 14 basis points to 5.28%, on loans of over €250,000 and up to €1 million increased by 22 basis points to 5.06%, while the rate on loans of over €1 million increased by 5 basis points to 4.59%. Finally, the average interest rate on housing loans at a floating rate (1) increased by 21 basis points to 2.83%.
2. INTEREST RATES ON OUTSTANDING AMOUNTS OF EURO-DENOMINATED DEPOSITS AND LOANS
In December 2016, the overall weighted average interest rates on the outstanding amounts of all deposits and all loans decreased. The spread* between loan and deposit rates decreased to 4.41 percentage points, compared with 4.48 points in the previous month (see Table 2).
In more detail, the overall weighted average interest rate on the outstanding amounts of all deposits (including overnight deposits) decreased by 4 basis points to 0.33% in December 2016, while the corresponding rate on loans decreased by 11 basis points to 4.74%. Part of the reduction in the interest rate on loans (and in particular 7 basis points) is due to the fact that as of December 2016 interest rate statistics do not include loans extended by the Consignment Deposits and Loans Fund, as this institution has been reclassified from the financial sector of the economy to the General Government sector (2).
In particular, the average interest rate on the outstanding amounts of deposits with an agreed maturity of up to 2 years placed by households decreased by 5 basis points to 0.72%. The average interest rate on the outstanding amounts of deposits with an agreed maturity of up to 2 years placed by non-financial corporations remained almost unchanged at 0.84%. The average interest rate on outstanding amounts of housing loans with over 5 years’ maturity decreased by 22 basis points to 2.39%. The decrease is, however, entirely due to the aforementioned reclassification of the Consignment Deposits and Loans Fund from the financial sector of the economy to the General Government sector2. The average interest rate on outstanding amounts of corporate loans with over 5 years’ maturity decreased by 19 basis points to 3.77%, while the corresponding rate on loans to sole proprietors increased by 4 basis points to 5.18%.
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Table 1: Average interest rates on new euro-denominated deposits and loans
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October 2016
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November 2016
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December 2016
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DEPOSITS
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Overnight from households
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0.12
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0.12
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0.10
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Overnight from non-financial corporations
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0.18
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0.17
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0.13
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From households with an agreed maturity of up to 1 year
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0.76
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0.71
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0.70
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Overall weighted average rate on all deposits
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0.37
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0.35
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0.32
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LOANS
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Consumer without a defined maturity
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14.47
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14.48
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14.51
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Corporate without a defined maturity
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5.76
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5.70
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5.65
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To sole proprietors without a defined maturity
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7.39
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7.36
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7.34
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Consumer at a floating rate1
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7.48
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7.96
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6.47
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Corporate with a fixed maturity at a floating rate1:
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4.98
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4.61
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4.67
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-amounts of up to €250,000
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5.87
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5.42
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5.28
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-amounts of over €250,000 and up to €1 million
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5.34
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4.84
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5.06
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-amounts of over €1 million
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4.91
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4.54
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4.59
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Housing at a floating rate1
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2.69
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2.62
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2.83
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Overall weighted average rate on all loans
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5.01
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4.83
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4.85
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Interest rate spread*
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4.64
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4.48
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4.53
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Table 2: Average interest rates on outstanding amounts of euro-denominated deposits and loans
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October 2016
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November 2016
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December 2016
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DEPOSITS
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From households with an agreed maturity of up to 2 years
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0.80
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0.77
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0.72
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From non-financial corporations with an agreed maturity of up to 2 years
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0.86
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0.83
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0.84
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Overall weighted average rate on all deposits**
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0.38
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0.37
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0.33
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LOANS
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Housing with over 5 years’ maturity
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2.62
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2.61
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2.39
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Corporate with over 5 years’ maturity
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3.94
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3.96
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3.77
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To sole proprietors with over 5 years’ maturity
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5.16
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5.14
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5.18
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Overall weighted average rate on all loans
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4.86
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4.85
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4.74
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Interest rate spread*
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4.48
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4.48
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4.41
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(1) Loans at a floating rate comprise also loans with an initial rate fixation period of up to one year.
(2) See the relevant announcement of ELSTAT at the following link: http://www.statistics.gr/en/statistics/-/publication/SEL08/-
*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 this average rate the overnight deposits are also taken into account.
The complete data set of bank deposit and loan interest rates are published on the website of the Bank of Greece and can be accessed via the following link:
http://www.bankofgreece.gr/Pages/en/Statistics/rates_markets/deposits.aspx
Note: The next Press Release on “Interest Rates on Bank Deposits and Loans” for January 2017 will be published on 3 March 2017.