November 7, 2022

Euro area bank interest rate statistics: September 2022

• Composite cost-of-borrowing indicator for new loans to corporations increased by 55 basis points to 2.41%, driven by interest rate effect; indicator for new loans to households for house purchase increased by 18 basis points to 2.44%, driven by interest rate effect
• Composite interest rate for new deposits with agreed maturity from corporations increased by 54 basis points to 0.74%, driven by interest rate effect; interest rate for overnight deposits from corporations increased by 5 basis points to 0.06%, driven by interest rate effect
• Composite interest rate for new deposits with agreed maturity from households increased by 21 basis points to 0.69%, mainly driven by interest rate effect; interest rate for overnight deposits from households broadly unchanged at 0.02%

Bank interest rates for corporations

Data for cost of borrowing and deposit interest rates for corporations (Chart 1)

The composite cost-of-borrowing indicator, which combines interest rates on all loans to corporations, increased, driven by the interest rate effect in September 2022. The interest rate on new loans of over €1 million with a floating rate and an initial rate fixation period of up to three months increased by 82 basis points to 2.36%, driven by the interest rate effect. The rate on new loans of the same size with an initial rate fixation period of over three months and up to one year rose by 46 basis points to 2.33%, mainly driven by the interest rate effect. The interest rate on new loans of over €1 million with an initial rate fixation period of over ten years increased by 23 basis points to 2.61%, driven by the interest rate effect. In the case of new loans of up to €250,000 with a floating rate and an initial rate fixation period of up to three months, the average rate charged rose by 40 basis points to 2.48%, mainly driven by the interest rate effect.
As regards new deposit agreements, the interest rate on deposits from corporations with an agreed maturity of up to one year rose by 54 basis points to 0.68% in September 2022, driven by the interest rate effect. The interest rate on overnight deposits from corporations rose by 5 basis points to 0.06%, driven by the interest rate effect.
The interest rate on new loans to sole proprietors and unincorporated partnerships with a floating rate and an initial rate fixation period of up to one year increased by 15 basis points to 2.75%, mainly driven by the interest rate effect.

Table 1

Bank interest rates for corporations

Data for bank interest rates for corporations (Table 1)

Bank interest rates for households

Chart 2

Bank interest rates on new loans to, and deposits from, euro area households

(percentages per annum)

Data for cost of borrowing and deposit interest rate for households (Chart 2)

The composite cost-of-borrowing indicator, which combines interest rates on all loans to households for house purchase, increased, driven by the interest rate effect in September 2022. The interest rate on loans for house purchase with a floating rate and an initial rate fixation period of up to one year increased by 19 basis points to 2.26%, driven by the interest rate effect. The rate on housing loans with an initial rate fixation period of over one and up to five years rose by 15 basis points to 2.59%, mainly driven by the interest rate effect. The interest rate on loans for house purchase with an initial rate fixation period of over five and up to ten years increased by 21 basis points to 2.84%, mainly driven by the interest rate effect. The rate on housing loans with an initial rate fixation period of over ten years rose by 18 basis points to 2.25%, mainly driven by the interest rate effect. In the same period the interest rate on new loans to households for consumption remained broadly unchanged at 6.02%.
As regards new deposits from households, the interest rate on deposits with an agreed maturity of up to one year increased by 21 basis points to 0.56%, mainly driven by the interest rate effect. The rate on deposits redeemable at three months’ notice stayed almost constant at 0.71%. The interest rate on overnight deposits from households remained broadly unchanged at 0.02%.

Source: European Central Bank
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither Karen Audit nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.