BOI-Interest rates on deposits and bank loans: June 2022

The weighted average interest rate on new deposits remained virtually unchanged at 0.03% in June 2022while the weighted average interest rate on new loans rose to 3.98%.

The interest rate differential between new deposits and loans increased to 3.95 percentage points.

The weighted average interest rate on outstanding deposits remained unchanged at 0.03%, while the weighted average interest rate on outstanding loans remained almost unchanged at 3.48%.

The interest rate differential between outstanding deposits and loans remained virtually unchanged at 3.45 percentage points.

1. Interest rates on new deposits and loans denominated in euros

New deposits

The weighted average interest rate on new deposits remained virtually unchanged at 0.03%.

In particular, the average interest rate on demand deposits placed by households remained almost unchanged at 0.03%, while the corresponding rate placed by non-financial corporations remained unchanged at 0.00%. The average interest rate on household deposits with a maturity of 1 year or less also remained unchanged at 0.12% compared to the previous month.

New loans

The weighted average interest rate on new loans to households and non-financial corporations increased by 13 basis points to 3.98%.

More specifically, the average interest rate for consumer loans with no defined maturity (a category that includes credit cards, revolving loans and overdrafts) fell by 8 basis points to 14.11%.

The average interest rate on variable-rate fixed-term consumer loans increased by 36 basis points to 11.36%. The average interest rate on variable rate mortgages increased by 32 basis points to 2.95%.

The average interest rate on new business loans with no defined maturity remained almost unchanged at 3.80%. The corresponding rate on loans to individual entrepreneurs decreased by 6 basis points to 6.29%.

In June 2022, the average interest rate on variable-rate fixed-term corporate loans increased by 12 basis points to 3.01%. The average interest rate on variable-rate fixed-term loans to small and medium-sized enterprises (SMEs) fell, from the previous month, by 32 basis points to 3.25%.

With regard to the structure of interest rates according to the amount of loans granted, the average loan rate of up to €250,000 decreased by 17 basis points to 4.50%, on loans over €250,000 and until 1 million euro increased by 8 basis points to 3.41% and on loans by more 1 million euro increased by 31 basis points to 2.92%.

2. Interest rates on outstanding deposits and loans denominated in euros

Deposits

The weighted average interest rate on outstanding deposits (including demand deposits) remained unchanged at 0.03%.

In particular, the average interest rates on outstanding deposits with maturity up to 2 years placed by households and by non-financial corporations also remained unchanged at 0.08% and 0.11%, respectively.

Loans

The weighted average interest rate on outstanding loans remained virtually unchanged at 3.48%.

In particular, the average interest rate on outstanding home loans over 5 years remained virtually unchanged at 1.99%. The corresponding rate on consumer and other loans to individuals and private non-profit institutions increased by 6 basis points to 6.34%.

The average interest rate on business loans over 5 years increased by 4 basis points to 3.03%, while the corresponding rate on loans to individual entrepreneurs remained unchanged at 4.20%.

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

April

2022

May

2022

June 2022

DEPOSITS

Household overnight stay

0.02

0.02

0.03

Overnight of non-financial corporations

0.00

0.00

0.00

Households with an agreed maturity of up to 1 year

0.13

0.12

0.12

Weighted average rate on all deposits

0.04

0.04

0.03

LOANS

Consumer without defined maturity

14.62

14.19

14.11

Company without defined maturity

3.83

3.77

3.80

Individual entrepreneurs with no defined maturity

6.51

6.35

6.29

Variable rate housing

2.40

2.63

2.95

Consumer with a defined variable rate maturity

11.05

11.00

11:36

Corporate with defined maturity at variable rate:

3.49

2.89

3.01

amounts up to €250,000

4.67

4.67

4.50

more quantities €250,000 and until 1 million euro

3.39

3.33

3.41

more quantities 1 million euro

3.44

2.61

2.92

Variable Rate Small and Medium Business Fixed Term Loans

3.53

3.57

3.25

Weighted average rate on all loans

4.14

3.85

3.98

Interest rate spread

4.10

3.81

3.95

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

April

2022

May

2022

June 2022

DEPOSITS

Households with an agreed maturity of up to 2 years

0.08

0.08

0.08

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

0.10

0.11

0.11

Weighted average rate on all deposits

0.03

0.03

0.03

LOANS

Housing with more than 5 years of maturity

1.94

1.96

1.99

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

6.34

6.28

6.34

Company with more than 5 years of maturity

3.01

2.99

3.03

Sole proprietors with a maturity of more than 5 years

4.25

4.20

4.20

Weighted average rate on all loans

3.49

3.46

3.48

Interest rate spread

3.46

3.43

3.45

Remarks:

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

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

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

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

Related information:

The full set of data on interest rates on bank deposits and loans is published in the subsection “Interest rates on bank deposits and loans” on the Bank of Greece website.

The next press release for July 2022 will be published on September 1, 2022 according to the release schedule on the Bank of Greece website.