Interest Rates on Bank Deposits and Loans: January 2020
04/03/2020 - Press Releases
1. INTEREST RATES ON EURO-DENOMINATED NEW DEPOSITS AND LOANS
In January 2020, the overall weighted average interest rates on new deposits and loans remained almost unchanged. The spread* between loan and deposit rates stood at 4.19 percentage points (see Table 1).
New Deposits
The overall weighted average interest rate on all new deposits remained almost unchanged at 0.17%.
In particular, the average interest rates on overnight deposits placed by households and non-financial corporations remained almost unchanged at 0.07% and 0.11% respectively. The average interest rate on deposits from households with an agreed maturity of up to 1 year also remained almost unchanged at 0.33%.
New Loans
The overall weighted average interest rate on all new loans to households and non-financial corporations remained basically unchanged at 4.36%.
More specifically, the average interest rate on consumer loans without a defined maturity (a category which comprises credit cards, open account loans and overdrafts) remained almost unchanged at 14.62%.
The average interest rate on consumer loans with a defined maturity at a floating rate [1] increased by 24 basis points to 11.18%. The average interest rate on housing loans at a floating rate [2] decreased by 6 basis points to 2.72%.
The average interest rate on corporate loans without a defined maturity decreased by 4 basis points to 4.70%. The corresponding rate on loans to sole proprietors remained almost unchanged at 6.73%.
The average interest rate on corporate loans with a defined maturity at a floating rate [3] decreased by 11 basis points to 3.47%, in January 2020, whereas the volume of new business [4] decreased to €487 million from €1,621 million in the previous month. More specifically, the rate on loans with a defined maturity at a floating rate to small and medium-sized enterprises (SMEs) remained almost unchanged at 3.72%, whereas the corresponding volume of new business was €190 million, in January 2020, compared with €602 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 15 basis points to 4.61%, on loans of over €250,000 and up to €1 million decreased by 9 basis points to 3.76% and the rate on loans of over €1 million decreased by 14 basis points to 3.37%.
2. INTEREST RATES ON OUTSTANDING AMOUNTS OF EURO-DENOMINATED DEPOSITS AND LOANS
In January 2020, the overall weighted average interest rates on outstanding amounts of all deposits and loans remained almost unchanged. The spread* between loan and deposit rates stood at 3.78 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 0.19% as the interest rate on overnight deposits remained basically unchanged, despite the decrease in rates of time deposits.
The average interest rate on outstanding amounts of deposits with an agreed maturity of up to 2 years placed by households decreased by 4 basis points to 0.40%, while the corresponding rate on deposits placed by non-financial corporations decreased by 9 basis points to 0.43%.
Outstanding Loans
The overall weighted average interest rate on outstanding amounts of all loans remained almost unchanged at 3.97%.
In particular, the average interest rate on outstanding amounts of housing loans with over 5 years’ maturity stood at 2.02% from 2.06% in the previous month. The average interest rate on outstanding amounts of consumer loans [5] with over 5 years’ maturity decreased by 6 basis points to 6.07%. The corresponding rate on corporate loans remained almost unchanged at 3.44%, while the average interest rate on outstanding amounts of loans to sole proprietors with over 5 years’ maturity remained unchanged at 4.38%.
Table 1: Average interest rates on new euro-denominated deposits and loans (percentages per annum)
| | | November 2019 | December 2019 | January 2020 |
| DEPOSITS | Overnight from households | 0.09 | 0.08 | 0.07 |
| Overnight from non-financial corporations | 0.15 | 0.12 | 0.11 |
| From households with an agreed maturity of up to 1 year | 0.36 | 0.35 | 0.33 |
| Overall weighted average rate on all deposits | 0.19 | 0.18 | 0.17 |
| LOANS | Consumer without a defined maturity | 14.51 | 14.60 | 14.62 |
| Corporate without a defined maturity | 4.70 | 4.74 | 4.70 |
| To sole proprietors without a defined maturity | 6.73 | 6.76 | 6.73 |
| Housing at a floating rate[6] | 2.84 | 2.78 | 2.72 |
| Consumer with a defined maturity at a floating rate6 | 10.69 | 10.94 | 11.18 |
| Corporate with a defined maturity at a floating rate6: | 3.46 | 3.58 | 3.47 |
| -amounts of up to €250,000 | 4.75 | 4.76 | 4.61 |
| -amounts of over €250,000 and up to €1 million | 3.64 | 3.85 | 3.76 |
| -amounts of over €1 million | 3.33 | 3.51 | 3.37 |
| Loans with a defined maturity to small and medium-sized enterprises at a floating rate6 | 3.78 | 3.71 | 3.72 |
| Overall weighted average rate on all loans | 4.34 | 4.34 | 4.36 |
| Interest rate spread* | 4.15 | 4.16 | 4.19 |
| | | | | |
Table 2: Average interest rates on outstanding amounts of euro-denominated deposits and loans (percentages per annum)
| | | November 2019 | December 2019 | January 2020 |
| DEPOSITS | From households with an agreed maturity of up to 2 years | 0.47 | 0.44 | 0.40 |
| From non-financial corporations with an agreed maturity of up to 2 years | 0.55 | 0.52 | 0.43 |
| Overall weighted average rate on all deposits** | 0.23 | 0.20 | 0.19 |
| LOANS | Housing with over 5 years’ maturity | 2.06 | 2.06 | 2.02 |
| Consumer and other with over 5 years’ maturity | 6.18 | 6.13 | 6.07 |
| Corporate with over 5 years’ maturity | 3.51 | 3.43 | 3.44 |
| To sole proprietors with over 5 years’ maturity | 4.46 | 4.38 | 4.38 |
| Overall weighted average rate on all loans | 4.02 | 3.99 | 3.97 |
| Interest rate spread* | 3.79 | 3.79 | 3.78 |
*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 rate on all deposits the overnight deposits are also taken into account.
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 website of the Bank of Greece.
Note: The next Press Release on “Interest Rates on Bank Deposits and Loans” for February 2020 will be published on 1 April 2020, according to the Release calendar, as published on the website of the Bank of Greece.
[1] Consumer loans at a floating rate comprise also loans with an initial rate fixation period of up to one year.
[2] Housing loans at a floating rate comprise also loans with an initial rate fixation period of up to one year.
[3] Corporate loans at a floating rate comprise also loans with an initial rate fixation period of up to one year and they account for 99.81% of the total.
[4] New business refers to new contracts that were agreed during the reference month and not actual loan disbursements.
[5] Including other loans to individuals and private non-profit institutions.
[6] Loans at a floating rate comprise also loans with an initial rate fixation period of up to one year.