Euro area bank interest rate statistics: May 2022

July 5, 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, increased, driven by the rate effect in May 2022. The interest rate on new loans more of €1 million with a variable rate and an initial rate fixation period of up to three months decreased by 4 basis points to 1.15%, due to the interest rate effect. The rate for new loans of the same amount with an initial rate fixation period greater than three months and less than or equal to one year increased by 10 basis points to 1.22%, due to the effect of rate. The interest rate on new loans over €1 million with an initial rate fixation period of more than ten years increased by 14 basis points to 1.98%, mainly due to the effect rate. For new loans up to €250,000 at variable rates and with an initial rate fixation period of up to three months, the average rate charged fell by 8 basis points to 1.80%, rate effect.
Regarding new deposit contracts, the interest rate on corporate deposits with a maturity of up to one year remained almost constant at -0.30% in May 2022. The interest rate on business demand deposits remained constant at -0.04%.
The interest rate on new loans to sole proprietors and unincorporated partnerships with variable rates and an initial rate fixation period of up to one year increased by 9 basis points to 2.20 %, mainly due to the weighting effect.

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 May 2022. The interest rate on variable rate home loans with an initial rate fixation period of up to one year increased by 10 basis points to 1.53%, due to the interest rate effect. The rate for housing loans with an initial rate fixation period greater than one year and less than or equal to five years increased by 14 basis points to 1.86%, due to the effect of rate. The interest rate on loans for house purchase with an initial rate fixation period greater than five years and less than or equal to ten years increased by 25 basis points to 2.02%, mainly due to the interest rate effect. The rate on home loans with an initial rate fixation period of more than ten years increased by 16 basis points to 1.74%, driven by the rate effect. Over the same period, the interest rate on new consumer loans to households increased by 17 basis points to 5.60%, reflecting both interest rate effects interest and weighting effects.
With regard to new household deposits, the interest rate of deposits with a maturity of less than or equal to one year and that of deposits redeemable at three months’ notice did not change at 0.18% and 0.47%. , respectively. The interest rate on household demand deposits remained constant 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.
  • Interest rates on new business 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 May 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.

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