News Column

Bank of Greece - Interest Rates on Bank Deposits and Loans: July 2014

September 4, 2014



ENP Newswire - 04 September 2014

Release date- 03092014 - Interest Rates on Bank Deposits and Loans: July 2014.

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



In July 2014, the overall weighted average interest rate on new deposits decreased, while the corresponding rate on new loans increased. The interest rate spread* between loan and deposit rates increased by 24 basis points to stand at 3.91 percentage points (see Table 1).

The overall weighted average interest rate on all new deposits decreased by 6 basis points to stand at 1.45%, in July 2014. In particular, the average interest rate on overnight deposits from households decreased by 4 basis points to stand at 0.29%, while the corresponding rate from non-financial corporations remained unchanged at 0.30%. The average interest rate on deposits from households, with an agreed maturity of up to one year, decreased by 11 basis points to stand at 2.28%.

The overall weighted average interest rate on all new loans to households and corporations increased by 18 basis points to stand at 5.36%, in July 2014. In particular, the average interest rate on consumer loans without a defined maturity (a category which includes credit card debt, open account loans and overdrafts) decreased by 9 basis points to stand at 14.43%. The average interest rate on consumer loans, with a defined maturity at a floating rate or with an initial rate fixation period of up to one year, increased by 53 basis points to stand at 7.13%.

In July 2014, the average interest rate on corporate loans without a defined maturity decreased by 10 basis points to stand at 6.90%, while the corresponding rate on loans to sole proprietors decreased by 3 basis points to stand at 8.37%. The average interest rate on corporate loans with a defined maturity at a floating rate or with an initial rate fixation period of up to one year for loans up to EUR250,000 increased by 28 basis points to stand at 6.12%, for loans over EUR250,000 and up to EUR1 million increased by 35 basis points to stand at 5.64%, and for loans above EUR1 million increased by 8 basis points to stand at 5.53%. Finally, the average interest rate on housing loans, at a floating rate or with an initial rate fixation period of up to one year, increased by 19 basis points to stand at 3.00%.

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



In July 2014, the overall weighted average interest rates on outstanding amounts of all deposits and loans decreased. The spread*, between loan and deposit rates, increased by 3 basis points to stand at 3.77 percentage points (see Table 2).

In July 2014, the overall weighted average interest rate on the outstanding amount of all deposits (including overnight deposits) decreased by 8 basis points to stand at 1.66%, while the corresponding rate on loans decreased by 5 basis points to stand at 5.43%.

In particular, in July 2014, the average interest rate on outstanding amounts of deposits from households with an agreed maturity of up to two years decreased by 14 basis points to stand at 2.57%, while the corresponding rate on deposits from non-financial corporations decreased by 13 basis points to stand at 2.44%. The average interest rate on outstanding amounts of housing loans, with over five years' maturity, decreased by 4 basis points to stand at 2.94%. The corresponding rate on corporate loans decreased by 11 basis points to stand at 4.46%, while the one on loans to sole proprietors decreased by 13 basis points to stand at 5.33%.

Table 1: Average interest rates on new euro-denominated deposits and loans

May 2014

June 2014

July 2014

DEPOSITS

Overnight from households

0.33

0.33

0.29

Overnight from non-financial corporations

0.36

0.30

0.30

From households with an agreed maturity of up to 1 year

2.53

2.39

2.28

Overall weighted average rate on all deposits

1.59

1.51

1.45

LOANS

Consumer without a defined maturity

14.52

14.52

14.43

Corporate without a defined maturity

7.22

7.00

6.90

To sole proprietors without a defined maturity

8.94

8.40

8.37

Consumer with a defined maturity at a floating rate or with an initial rate fixation period of up to 1 year

7.80

6.60

7.13

Corporate with a fixed maturity at a floating rate or with an initial rate fixation period of up to 1 year:

loans up to an amount of EUR250,000

loans above EUR250,000 and up to EUR 1 million

loans above EUR1 million

6.49

5.89

5.57

5.84

5.29

5.45

6.12

5.64

5.53

Housing at a floating rate or with an initial rate fixation period of up to 1 year

2.94

2.81

3.00

Overall weighted average rate on all loans

5.45

5.18

5.36

Interest rate spread*

3.86

3.67

3.91

Table 2: Average interest rates on outstanding amounts of euro-denominated deposits and loans

May 2014

June 2014

July 2014

DEPOSITS

From households with an agreed maturity of up to 2 years

2.80

2.71

2.57

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

2.71

2.57

2.44

Overall weighted average rate on all deposits**

1.81

1.74

1.66

LOANS

Housing with over 5 years' maturity

3.00

2.98

2.94

Corporate with over 5 years' maturity

4.80

4.57

4.46

To sole proprietors with over 5 years' maturity

6.17

5.46

5.33

Overall weighted average rate on all loans

5.61

5.48

5.43

Interest rate spread*

3.80

3.74

3.77

*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.


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Source: ENP Newswire


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