The “gap” between interest rates on new deposits and new loans is widening, according to its data Bank of Greece which saw the light of day on Friday.

In particular, the difference between the interest rates on new deposits and new loans widened to 5.36 points in February from 5.24 points in January and 4.96 points at the end of 2022.

According to TbE data, the average interest rate on new deposits is being formed at 0.21% and of new loans at 5.57%.

Particularly:

  • In February 2023, the weighted average interest rate on new deposits increased to 0.21%, while the corresponding interest rate on new loans increased to 5.57%.
  • The interest rate spread between new deposits and loans increased to 5.36 percentage points.
  • In February 2023, the weighted average interest rate of all existing deposits increased to 0.18%, while the corresponding interest rate on existing loans increased to 5.52%.
  • The interest rate spread between existing deposits and loans increased to 5.34 percentage points.

1. Interest rates on new deposits and loans in euros

New Deposits

The weighted average interest rate on all new deposits increased by 9 basis points to 0.21%.

In particular, the average interest rate on overnight deposits from households remained unchanged at 0.03%, while the corresponding interest rate on business deposits stood at 0.10% from 0.08% the previous month.

The average interest rate on deposits with an agreed term of up to 1 year from households increased by 57 basis points to 1.03%. The corresponding interest rate on corporate deposits increased by 33 basis points and stood at 1.29%.

New Loans

The weighted average interest rate on all new loans to households and businesses increased by 21 basis points to 5.57%.

In particular, the average interest rate on consumer loans without a fixed term (category that includes loans through credit cards, open loans and overdrafts from current accounts) increased by 10 basis points and stood at 14.83%.

The average interest rate on consumer loans with a fixed term and variable interest rate increased by 36 basis points and stood at 11.72%. The average interest rate on variable rate mortgages increased by 8 basis points to 3.98%.

The average interest rate on non-term business loans rose 16 basis points to 5.85%. The corresponding interest rate on professional loans increased by 10 basis points and stood at 7.30%.

The average interest rate on new fixed term and floating rate business loans increased by 35 basis points in February 2023 to 5.27%. The average interest rate on regular maturity loans with a variable interest rate to small and medium enterprises (SMEs) increased by 46 basis points and stood at 5.42%.

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 13 basis points to 6.47%, for loans from 250,001 to 1 million euros it increased by 8 basis points and stood at 5.71% and for loans over 1 million euros it increased by 37 basis points to 5.22%.

2. Interest rates on existing deposit and loan balances in euros

Existing Deposits

The weighted average interest rate on total outstanding deposits (including overnight deposits) increased by 7 basis points to 0.18%.

In particular, the average interest rate on the existing balances of deposits with an agreed duration of up to 2 years from households increased by 33 basis points and stood at 0.68%, while the corresponding interest rate on deposits from businesses increased by 33 basis points and stood at 1.20 %.

Existing Loans

The weighted average interest rate on existing loans increased by 19 basis points to 5.52%.

In particular, the average interest rate on existing mortgage loan balances with a duration of more than 5 years increased by 26 basis points and stood at 4.27%. The corresponding interest rate on consumer and other loans to individuals and private non-profit institutions increased by 11 basis points and stood at 7.27%.

The average interest rate on business loans with terms of more than 5 years increased by 16 basis points to 5.21%. The corresponding interest rate on professional loans increased by 27 basis points and stood at 6.36%.

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

December 2022

January 2023

February 2023

deposits

One day households

0.03

0.03

0.03

One day business

0.05

0.08

0.10

Households with an agreed duration of up to 1 year

0.33

0.46

1.03

Businesses with an agreed duration of up to 1 year

0.83

0.96

1.29

Weighted average interest rate of all new deposits

0.10

0.12

0,21

LOANS

Consumer goods without fixed duration

14.68

14.73

14.83

Business without fixed duration

5.21

5.69

5.85

Professional without fixed duration

7.06

7.20

7.30

Floating rate mortgages

3.81

3.90

3.98

Consumer loans with a fixed term and variable interest rate

11.32

11.36

11.72

Commercial with fixed term and variable interest rate:

4.54

4.92

5.27

-loans up to 250,000 euros

6.14

6.34

6.47

-loans from 250,001 to 1 million euros

5.14

5.63

5.71

-loans of more than 1 million euros

4.49

4.85

5.22

Fixed-term loans to small and medium-sized enterprises with a variable interest rate

4.83

4.96

5.42

Weighted average interest rate of all new loans

5.06

5.36

5,57

Interest margin

4,96

5.24

5,36

Table 2: Average interest rates on the existing balances of deposits and loans in euros (% per annum)

December 2022

January 2023

February 2023

deposits

Households with an agreed duration of up to 2 years

0.22

0.35

0.68

Businesses with an agreed duration of up to 2 years

0.73

0.87

1.20

Weighted average deposit rate

0.09

0.11

0.18

LOANS

Mortgages with a duration of more than 5 years

3.68

4.01

4.27

Consumer and other loans with a duration of more than 5 years

7.02

7.16

7.27

Business with a duration of more than 5 years

4.71

5.05

5.21

Professionally with a duration of more than 5 years

5.87

6.09

6.36

Weighted average loan interest rate

5.02

5.33

5.52

Interest margin

4,93

5.22

5,34

Notes:

  1. The interest spread 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 deposit balances, one-day deposits are also taken into account.
  3. Loans with a variable interest rate 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 contracts concluded during the reporting month and not loan disbursements.