BoG: Unchanged interest rate on deposits, increased in new loans

The weighted average interest rate on new deposits remained unchanged at 0.04% in April 2022, while the weighted average interest rate on new loans increased to 4.14%, the Bank of Greece announced today.

The interest rate margin between new deposits and loans increased to 4.10 percentage points.

The weighted average interest rates of all existing deposits and loans remained unchanged at 0.03% and 3.49% respectively.

Finally, the interest rate margin between existing deposits and loans remained unchanged at 3.46 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 0.04%.

In particular, the average interest rates on overnight deposits from households and businesses remained unchanged at 0.02% and 0.00% respectively. The average interest rate on deposits with an agreed maturity of up to 1 year by households also remained unchanged compared to the previous month, at 0.13%.

New Loans

The weighted average interest rate on all new loans to households and businesses increased by 32 basis points to 4.14%.

In particular, the average interest rate on consumer loans without a fixed term (category that includes credit card loans, open loans and current account overdrafts) decreased by 7 basis points to 14.62%.

The average interest rate on consumer loans with a certain duration and floating interest rate decreased by 14 basis points to 11.05%. The average interest rate on floating rate mortgages decreased by 4 basis points to 2.40%.

The average interest rate on business loans without fixed maturity decreased by 6 basis points to 3.83%. The corresponding interest rate on business loans remained almost unchanged at 6.53%.
The average interest rate on new business loans with a specific duration and floating interest rate increased by 65 basis points in April 2022, reaching 3.49%. The average interest rate on floating rate loans with a floating interest rate to small and medium-sized enterprises (SMEs) increased by 37 basis points to 3.54%.

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 increased by 16 basis points to 4.68%, for loans from 250,001 to 1 million euros decreased by 16 basis points to 3 , 39% and for loans over 1 million euros increased by 81 basis points to 3.44%.

Interest rates on existing deposits and loans

Existing Deposits

The weighted average interest rate on all existing deposits (including overnight deposits) remained unchanged at 0.03%.

In particular, the average interest rate on existing deposit balances with an agreed maturity of up to 2 years by households remained unchanged at 0.08%, while the corresponding interest rate on corporate deposits remained almost unchanged at 0.10%.

Existing Loans

The weighted average interest rate on existing loans remained unchanged at 3.49%.

In particular, the average interest rate on existing mortgage balances over 5 years and the corresponding interest rates on consumer and other loans to individuals and private non-profit institutions remained virtually unchanged at 1.94% and 6.34% respectively. The average interest rate on business loans with a maturity of more than 5 years remained unchanged at 3.01%, while the corresponding interest rate on business loans remained almost unchanged at 4.25%.

Noteyou:

1. The interest rate margin is equal to the difference between the weighted average interest rate of all loans and the weighted average interest rate of all deposits.
2. For the calculation of the weighted average interest rate on the existing balances of deposits, overnight deposits are also taken into account.
3. Floating rate loans also include loans with a fixed interest rate of up to 1 year.
4. The amount of new loans refers to amounts of new loan agreements concluded during the reference month and not loan disbursements.