The weighted average interest rate on new deposits remained unchanged at 0.05% in October 2021, while the weighted average interest rate on new loans increased to 3.94%, the Bank of Greece announced today.
The interest rate margin between new deposits and loans increased to 3.89 percentage points.
The weighted average interest rate on all existing deposits remained unchanged at 0.04%, while the weighted average interest rate on existing loans decreased to 3.51%.
The interest rate margin between existing deposits and loans decreased to 3.47 percentage points.
Interest rates on new deposits and loans in euros
New Deposits
The weighted average interest rate of all new deposits remained unchanged at 0.05%.
In particular, the average interest rate on overnight deposits from households remained unchanged at 0.03%, while the corresponding interest rate on corporate deposits remained almost unchanged at 0.00%. The average interest rate on deposits with an agreed duration of up to 1 year by households remained unchanged at 0.14%, compared to the previous month.
New Loans
The weighted average interest rate on all new loans to households and businesses increased by 17 basis points to 3.94%.
In particular, the average interest rate on consumer loans with no fixed maturity (category that includes credit card loans, open loans and current account overdrafts) increased by 20 basis points to 14.48%.
The average interest rate on consumer loans with a specific duration and floating interest rate increased by 10 basis points to 11.39%. The average interest rate on floating rate mortgages also increased by 10 basis points to 2.43%.
The average interest rate on business loans without fixed term decreased by 12 basis points to 4.13%, while the corresponding interest rate on business loans remained unchanged at 6.49%.
The average interest rate on new business loans with a specific duration and floating interest rate increased by 34 basis points in October 2021, reaching 2.85% compared to 2.51% in the previous month. The average interest rate on floating-rate loans to small and medium-sized enterprises (SMEs) fell to 3.16% from 3.24% last month.
Regarding the structure of interest rates in terms of the amount of the loan, it is noted that the average interest rate for loans up to 250,000 euros remained almost unchanged at 4.36%, for loans from 250,001 to 1 million euros increased by 8 basis points to 3.36 %, while for loans over 1 million euros it increased by 32 basis points to 2.73%.
Interest rates on existing deposits and loans
Existing Deposits
The weighted average interest rate on all existing deposits (including overnight deposits) remained unchanged at 0.04%.
In particular, the average interest rate on existing deposit balances with an agreed maturity of up to 2 years by households remained almost unchanged at 0.10%, while the corresponding interest rate on corporate deposits remained unchanged at 0.07%.
Existing Loans
The weighted average interest rate on existing loans decreased by 6 basis points to 3.51%.
In particular, the average interest rate on existing mortgage balances over 5 years decreased by 10 basis points to 1.92%. The average interest rate on existing balances of consumer and other loans to individuals and private non-profit institutions with a maturity of more than 5 years decreased by 21 basis points to 6.40%. The respective interest rates on business and professional loans remained almost unchanged at 3.10% and 4.29% respectively.
The interest margin is equal to the difference between the weighted average interest rate of all loans and the weighted average interest rate of all deposits.
One-day deposits are also taken into account for the calculation of the weighted average interest rate on existing deposit balances.
Floating rate loans also include loans with a fixed interest rate of up to 1 year.
The amount of new loans refers to amounts of new loan agreements entered into during the reference month and not loan disbursements.
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Source From: Capital
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