Bank of Greece – Interest rates on bank deposits and loans: May 2022

Bank of Greece -Interest rates on bank deposits and loans: May 2022.

The weighted average interest rate on new deposits remained virtually unchanged at 0.02% in May 2022while the weighted average interest rate on new loans fell to 3.86%.

The interest rate differential between new deposits and loans narrowed to 3.84 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 3.46%.

The interest rate differential between outstanding deposits and loans remained virtually unchanged at 3.43 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 0.02%.

In particular, the average interest rates on overnight deposits placed by households and by non-financial corporations remained unchanged at 0.02% and 0.00% respectively. The average interest rate on household deposits with a maturity of up to 1 year remained almost 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 fell by 28 basis points to 3.86%.

Specifically, the average interest rate for consumer loans with no defined maturity (a category that includes credit cards, revolving loans and overdrafts) fell by 43 basis points to 14.19%.

The average interest rate on floating rate fixed-term consumer loans fell by 5 basis points to 11.00%. On the contrary, the average interest rate on variable rate mortgages increased by 25 basis points to 2.65%.

The average interest rate on new corporate loans with no defined maturity decreased by 6 basis points to 3.77%. The corresponding rate on loans to sole proprietors also fell by 16 basis points to 6.35%.

In May 2022, the average interest rate on variable-rate fixed-term corporate loans fell by 60 basis points to 2.89%. The interest rate on fixed-term variable-rate loans to small and medium-sized enterprises (SMEs) increased, compared to the previous month, by 4 basis points to 3.57%.

With regard to the structure of interest rates according to the amount of loans granted, the rate of loans up to €250,000 remained virtually unchanged at 4.67%, on loans over €250,000 and until 1 million euro decreased by 6 basis points to 3.33% and on loans by more 1 million euro decreased by 83 basis points to 2.61%.

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 rate on outstanding deposits with a maturity of less than or equal to 2 years placed by households remained unchanged at 0.08%, while the corresponding rate on deposits from non-financial corporations remained almost unchanged. unchanged at 0.11%.

Loans

The weighted average interest rate on outstanding loans remained virtually unchanged at 3.46%.

In particular, the average interest rate on outstanding mortgages over 5 years remained virtually unchanged at 1.96%. The corresponding rate on consumer and other loans to individuals and private non-profit institutions fell by 5 basis points to 6.29%. The average interest rate on business loans over 5 years remained almost unchanged at 2.99%, while the corresponding rate on loans to individual entrepreneurs fell by 5 basis points to 4.20%.

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.

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