Euro area bank interest rate statistics: February 2022

March 31, 2022

Bank interest rates for companies

Chart 1

Bank interest rates on new loans and deposits from euro area companies

(percentages per year)

Data on the cost of borrowing and interest rates on corporate deposits (Chart 1)

The composite cost of borrowing indicator, which combines interest rates on all corporate loans, remained broadly unchanged in February 2022. The interest rate on new loans over €1 million with a floating rate and an initial rate fixation period of up to three months fell 6 basis points to 1.07%, driven by both interest rate and weighting effects. The rate for new loans of the same size with an initial rate fixation period greater than three months and less than or equal to one year fell 17 basis points to 1.07%. This decrease is explained by developments in two countries of the euro zone and mainly by the interest rate effect. The interest rate on new loans over €1 million with an initial rate fixation period of more than ten years increased by 4 basis points to 1.42%, driven by both rate effects and weighting. For new loans up to €250,000 at variable rates and with an initial rate fixation period of up to three months, the average charged rate fell by 14 basis points to 1.77%. This decrease is explained by the evolutions in a country of the euro zone and by the effect of interest rates.
Regarding new deposit contracts, the interest rate on corporate deposits with a maturity of up to one year remained almost constant at -0.31% in February 2022. The interest rate on business demand deposits remained constant at -0.04%.
The interest rate on new loans to sole proprietorships and unincorporated partnerships with variable rates and an initial rate fixation period of up to one year increased by 8 basis points to to 2.05%, driven by both interest rate effects and weighting effects.

Table 1

Bank interest rates for companies

irf = initial fixation rate
* For this category of instruments, the concept of new business is extended to all outstandings and therefore the business volumes are not comparable to those of the other categories. Data on outstanding amounts are taken from the balance sheet statistics of monetary financial institutions of the ECB.

Data on bank interest rates for companies (table 1)

Bank interest rates for households

Chart 2

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

(percentages per year)

Data on the cost of borrowing and the interest rate on deposits for households (Chart 2)

The composite cost of borrowing indicator, which combines interest rates on all housing loans granted to households, increased, driven by the interest rate effect in February 2022. The interest rate on variable rate home loans with an initial rate fixation period of up to one year and on home loans with an initial rate fixation period greater than one year and less than or equal to five years are remained broadly unchanged at 1.36% and 1.49%, respectively. The rate for home loans with an initial rate fixation period greater than five years and less than or equal to ten years increased by 8 basis points to 1.39%, driven by the rate effect. The rate on home loans with an initial rate fixation period of more than ten years increased by 5 basis points to 1.37%, driven by the rate effect. Over the same period, the interest rate on new consumer loans to households remained broadly unchanged at 5.30%.
Regarding new deposits from households, the interest rate on deposits with a maturity of up to one year remained broadly unchanged at 0.17%. The rate on deposits redeemable at three months’ notice increased by 11 basis points to 0.46%. This increase is due to developments in a euro area country and the effect of interest rates. The interest rate on household demand deposits remained unchanged at 0.01%.

Table 2

Bank interest rates for households

irf = initial fixation rate
* For this category of instruments, the notion of new business is extended to all outstandings and therefore the business volumes are not comparable to those of the other categories; deposits placed by households and corporations are allocated to the household sector. Data on outstanding amounts are taken from the balance sheet statistics of monetary financial institutions of the ECB.
** For this category of instruments, the notion of new business is extended to all outstandings and therefore the business volumes are not comparable to those of the other categories. Data on outstanding amounts are taken from the balance sheet statistics of monetary financial institutions of the ECB.

Data on bank interest rates for households (table 2)

More information

Tables with further breakdowns of bank interest rate statistics, including composite cost of borrowing indicators for all euro area countries, are available from the ECB’s statistical data warehouse. A subset is presented visually at www.euro-area-statistics.org. Full bank interest rate statistics for the Eurozone and individual countries can be downloaded from SDW. Further information, including the release schedule, is available under “Bank interest rates” in the statistics section of the ECB’s website.

For media inquiries, please contact Philippe RispalPhone. : +49 69 1344 5482

Remarks:

  • In this press release, “corporations” refer to non-financial corporations (sector S.11 of the European System of Accounts 2010, or ESA 2010), “households” refer to households and non-profit institutions serving households ( SEC 2010, sectors S. 14 and S.15) and “banks” refers to monetary financial institutions with the exception of central banks and monetary UCITS (ESA 2010 sectors S.122).
  • The composite cost of borrowing indicators are described in the article entitled “Assessing the retail bank interest rate pass-through in the euro area at times of financial fragmentation” in the August 2013 issue of the ECB’s Monthly Bulletin (cf. box 1). For these indicators, a weighting scheme based on 24-month moving averages of new business volumes has been applied, in order to filter out excessive monthly volatility. For this reason, the changes in the composite cost of borrowing indicators in the two tables cannot be explained by the month-to-month changes in the sub-components shown. In addition, the table on bank interest rates for corporations presents a subset of the series used in the calculation of the cost of borrowing indicator.
  • New business interest rates are weighted by the size of the individual agreements. This is done both by reporting agents and when calculating national and euro area averages. Thus, variations in the average interest rates applied to new contracts in the euro zone reflect, in addition to variations in interest rates, variations in the weighting of new contracts in each country for the categories of instruments concerned. The “interest rate effect” and the “weighting effect” presented in this press release are derived from the Bennet index, which makes it possible to evaluate from one month to another the monthly evolutions of the aggregate interest rates euro area resulting from changes in individual countries’ rates (“the interest rate effect”) to be distinguished from those caused by changes in the weights of individual countries’ contributions (“the weight effect”). rounding, the “interest rate effect” and the “weight effect” combined may not correspond to the monthly evolutions of the euro zone aggregate rates.
  • In addition to monthly euro area bank interest rate statistics for February 2022, this press release incorporates revisions to data for previous periods. Hyperlinks in the main body of the press release lead to data which may change with subsequent releases as a result of revisions. Unless otherwise stated, these euro area statistics cover those EU Member States which had adopted the euro at the time the data relates.
  • Since the December 2014 reference period, the sector classification applied to bank interest rate statistics is based on the European System of Accounts 2010 (ESA 2010). In line with the ESA 2010 classification and as opposed to ESA 95, the non-financial corporations sector (S.11) now excludes non-managing holding companies and similar captive financial institutions.
  • References to the number of countries driving the developments in the euro area described are based on changes in interest rates in each country in combination with the weight of the respective country in the total volume of transactions.

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