Interest rate on bank deposits and loans: January 2021

Interest rate on bank deposits and loans: January 2021

03/03/2021 – Press releases

1. INTEREST RATES ON NEW DEPOSITS AND LOANS NAMED IN EURO

In January 2021, the overall weighted average interest rate on Newdeposits remained unchanged, while the corresponding rate on New loans have increased.The spread between loan and deposit rates also increased to 3.80 percentage points (seeBoard1).

New deposits

The overall weighted average interest rate on all new deposits remained unchanged at 0.08%.

In particular, the average interest rates on demand deposits of households and non-financial corporations remained broadly unchanged at 0.04% and 0.03% respectively. The average interest rate on household deposits with an agreed term of 1 year or less remained unchanged at 0.19% compared to the previous month.

US Loans

The overall weighted average interest rate on all new loans to households and non-financial corporations increased by 10 basis points to 3.88%.

More specifically, the average interest rate on consumer loans with no defined maturity (a category that includes credit cards, open-account loans and overdrafts) remained virtually unchanged at 14.63%.

The average interest rate on fixed-maturity variable-rate consumer loans was also virtually unchanged at 11.33%. The average interest rate on variable rate home loans fell 32 basis points to 2.11%.

The average interest rate on business loans with no fixed maturity fell by 5 basis points to 4.36%. The corresponding rate on loans to unincorporated businesses also fell by 5 basis points to 6.66%.

In January 2021, the average interest rate on variable rate fixed-maturity corporate loans increased by 6 basis points to 2.87%, while new business volume decreased to 921 million euros from 2,926 million euros the previous month. Specifically, the interest rate on fixed-term variable rate loans to small and medium-sized enterprises (SMEs) fell to 3.22% from 3.30% in the previous month, while the corresponding volume of news business decreased to 343 million euros. against 998 million euros the previous month (see graph and table 1).

Regarding the structure of interest rates according to the size of loans granted, the rate of loans up to € 250,000 increased by 33 basis points to 4.49%, on loans above € 250,000 and up to € 1 million, decreased by 11 basis points to 3.12%, while on loans above € 1 million, they increased by 11 basis points to 2.64%.

2. INTEREST RATE ON AMOUNTS CURRENTLY DEPOSITED AND LOANS IN EURO-NAMES

In January 2021, the overall weighted average interest rates on exceptionalthe amounts of all deposits and loans remained virtually unchanged. TThe spread between loan and deposit rates remained virtually unchanged at 3.65 percentage points (see Table 2).

Deposits

The overall weighted average interest rate on the outstanding amounts of all deposits (including demand deposits) remained unchanged at 0.08%.

The average interest rate on outstanding deposits with an agreed term of up to 2 years placed by households remained virtually unchanged at 0.18%; the corresponding rate on deposits placed by non-financial corporations also remained virtually unchanged at 0.12%.

Loans

The overall weighted average interest rate on all loans outstanding remained virtually unchanged at 3.73%.

In particular, the average interest rate on outstanding mortgage loans with more than 5 years remained unchanged at 2.01%. The average interest rate on outstanding consumer and other loans to individuals and private non-profit institutions with a maturity of more than 5 years increased by 8 basis points to 6.55%; the corresponding rates for loans to businesses and loans to unincorporated businesses remained virtually unchanged at 3.24% and 4.25% respectively.

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

November 2020 December 2020 January 2021
DEPOSITS Household night 0.04 0.04 0.04
Night of non-financial corporations 0.05 0.04 0.03
From households with an agreed maturity of up to 1 year 0.21 0.19 0.19
Overall weighted average rate on all deposits 0.09 0.08 0.08
LOANS Consumer without defined maturity 14.51 14.61 14.63
Company without defined maturity 4.44 4.41 4.36
To sole owners with no defined deadline 6.67 6.71 6.66
Variable rate housing 2.33 2.43 2.11
Fixed-term consumer at variable rate 10.97 11.31 11.33
Fixed-term company at variable rate: 3.08 2.81 2.87
– amounts up to € 250,000 5.99 4.16 4.49
– amounts greater than € 250,000 and up to € 1 million 3.59 3.23 3.12
– amounts exceeding 1 million euros 2.68 2.53 2.64
Fixed-term loans to small and medium-sized businesses at variable rates 4.28 3.30 3.22
Overall weighted average rate of all loans 4.14 30.78 30.88
Interest rate spread 40.05 30.70 30.80

Board2: Averageinterestratesatexceptionalthe amountsofdenominated in euros depositsandloans (percentages per year)

November 2020 December 2020 January 2021
DEPOSITS From households with an agreed maturity of up to 2 years 0.22 0.20 0.18
From non-financial companies whose agreed maturity is less than or equal to 2 years 0.16 0.13 0.12
Overall weighted average rate on all deposits 0.09 0.08 0.08
LOANS Housing with more than 5 years of maturity 2.01 2.01 2.01
Consumer loans and other loans to individuals and private non-profit institutions with a term of more than 5 years 6.47 6.47 6.55
Company with more than 5 years of maturity 3.25 3.25 3.24
To sole owners with a maturity of more than 5 years 4.33 4.26 4.25
Overall weighted average rate of all loans 30.76 30.75 30.73
Interest rate spread 30.67 30.67 30.65

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

Notes:

  • The interest rate spread is the difference between the overall weighted average rate of all loans and the overall weighted average rate of all deposits.
  • For the calculation of the overall weighted average interest rate on all outstanding deposits, sight deposits are also taken into account.
  • Variable rate loans also include loans with an initial rate fixation period of up to one year.
  • New business refers to new contracts that were entered into during the reference month and not to actual loan disbursements.

The next press release on “ interest rates on bank deposits and loans ” for February 2021 will be released on March 31, 2021, according to the Release schedule, as posted on the Bank of Greece website.

Warning

Bank of Greece published this content on 03 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unchanged, on 03 Mar 2021 11:23:06 AM UTC.

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