Bank of Greece – Interest rate on bank deposits and loans: November 2021

The weighted average interest rate on new deposits remained unchanged at 0.05% in November 2021, while the weighted average interest rate on new loans fell to 3.73%.

The interest rate differential between new deposits and loans narrowed to 3.68 percentage points.

The weighted average interest rates on outstanding deposits and loans remained unchanged at 0.04% and 3.51% respectively.

The interest rate differential between outstanding deposits and loans remained unchanged at 3.47 percentage points.

1.	Interest rates on euro-denominated new deposits and loans

New deposits

The weighted average interest rate on new deposits remained unchanged at 0.05%.

In particular, the average interest rates on demand deposits placed by households and non-financial corporations remained unchanged at 0.03% and 0.00% respectively. The average interest rate on household deposits with a maturity of 1 year or less also remained unchanged at 0.14% compared to the previous month.

New loans

The weighted average interest rate on new loans to households and non-financial corporations fell 21 basis points to 3.73%.

More specifically, the average interest rate on consumer loans with no fixed maturity (a category that includes credit cards, revolving loans and overdrafts) remained virtually unchanged at 14.50%.

The average interest rate on fixed-maturity variable-rate consumer loans remained virtually unchanged at 11.42%. The average interest rate on variable rate home loans also remained unchanged at 2.41%.

The average interest rate on new business loans with no fixed maturity fell 11 basis points to 4.02%, while the corresponding rate on unincorporated business loans was virtually unchanged at 6.47%.

In November 2021, the average interest rate on fixed-term, variable-rate corporate loans fell 29 basis points to 2.56% from 2.85% the previous month. The interest rate on fixed-term and variable-rate loans to small and medium-sized enterprises (SMEs) rose to 3.29% from 3.16% the previous month.

Regarding the structure of interest rates according to the size of the loans granted, the rate of loans up to 250,000 euros remained virtually unchanged at 4.39%, on loans of more than 250,000 euros and up to 1 million euros decreased by 18 basis points to 3.18%, while on loans over 1 million euros it fell 35 basis points to 2.38%.

2.	Interest rates on outstanding amounts of euro-denominated deposits and loans

Deposits

The weighted average interest rate on outstanding deposits (including demand deposits) remained unchanged at 0.04%.

In particular, the average interest rates on the outstanding deposits of 2 years or less placed by households and non-financial corporations remained virtually unchanged at 0.10% and 0.07% respectively.

Loans

The weighted average interest rate on outstanding loans remained unchanged at 3.51%.

In particular, the average interest rates on outstanding housing loans, as well as consumer and other loans to individuals and private non-profit institutions with a maturity of more than 5 years, remained virtually unchanged at respectively 1.91% and 6.41%. The average interest rate on business loans also remained virtually unchanged at 3.09%, while the corresponding rate on loans to unincorporated businesses remained unchanged at 4.29%.

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

September 2021

October 2021

November 2021

DEPOSITS

Household overnight

0.03

0.03

0.03

Day-to-day non-financial corporations

0.01

0.00

0.00

Households with an agreed maturity of up to 1 year

0.14

0.14

0.14

Weighted average rate on all deposits

0.05

0.05

0.05

LOANS

Consumer without defined maturity

14.28

14.48

14.50

Company with no defined deadline

4.25

4.13

4.02

To sole proprietorships with no defined deadline

6.49

6.49

6.47

Variable rate housing

2.33

2.43

2.41

Fixed-term consumer at variable rate

11.29

11.39

11.42

Corporate with defined maturity at variable rate:

2.51

2.85

2.56

amounts up to 250,000 euros

4.35

4.36

4.39

more amounts 250,000 euros and up to 1 million euros

3.28

3.36

3.18

more amounts 1 million euros

2.41

2.73

2.38

Fixed-term loans to small and medium-sized businesses at variable rates

3.24

3.16

3.29

Weighted average rate on all loans

3.77

3.94

3.73

Interest rate spread

3.72

3.89

3.68

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

September 2021

October 2021

November 2021

DEPOSITS

From households with an agreed maturity of up to 2 years

0.11

0.10

0.10

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

0.07

0.07

0.07

Weighted average rate on all deposits

0.04

0.04

0.04

LOANS

Housing with a maturity of more than 5 years

2.02

1.92

1.91

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

6.61

6.40

6.41

Company with a maturity of more than 5 years

3.12

3.10

3.09

To sole proprietorships over 5 years old

4.30

4.29

4.29

Weighted average rate on all loans

3.57

3.51

3.51

Interest rate spread

3.53

3.47

3.47

Remarks:

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

For the calculation of the weighted average interest rate on all outstanding deposits, demand 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.

Associated information:

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

The next press release for december 2021 will be published on February 3, 2022, according to the release schedule, as published on the Bank of Greece website.