Eurozone bank interest rate statistics: March 2024

May 3, 2024 Vaseline stjohnson 0

May 3, 2024

Bank interest rates for corporations

Table 1

Bank interest rates applied to new loans and deposits of euro area companies

(percentages per year)

Data on the cost of borrowing and deposit interest rates for businesses (Chart 1)

The composite indicator of the cost of financing, which combines the interest rates on all loans to companies, increased in March 2024. The interest rate on new loans above €1 million with a variable rate and an initial period of rate fixation for up to three months increased 6 basis points to 5.16%, driven by both the interest rate effect and the weighting effect. The interest rate on new loans of the same amount with an initial rate fixation period of more than three months and up to one year increased by 34 basis points to 5.17%, driven mainly by the interest rate effect. The interest rate on new loans over €1 million with an initial rate fixation period of over ten years increased by 5 basis points to 3.96%, driven by the interest rate effect. In the case of new loans of up to 250,000 euros at a variable rate and with an initial rate fixation period of up to three months, the average applied rate fell 5 basis points, to 5.39%.
Regarding the new deposit agreements, the interest rate on company deposits with a term of up to one year increased by 5 basis points, to 3.68% in March 2024. The interest rate on demand deposits of companies remained almost constant at 0.90%.
The interest rate on new loans granted to individual entrepreneurs and unincorporated companies at a variable rate and with an initial rate fixation period of up to one year remained practically unchanged at 5.62%.

Table 1

Bank interest rates for corporations

irf = initial rate setting
* For this category of instruments, the concept of new business extends to all outstanding balances and therefore the business volumes are not comparable with those of the rest of the categories. Data on outstanding balances are derived from the balance sheet statistics of the ECB’s monetary financial institutions.

Data on bank interest rates for corporations (Table 1)

Bank interest rates for households

Table 2

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

(percentages per year)

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

The composite indicator of the cost of financing, which combines the interest rates on all loans to households for house purchase, decreased in March 2024. The interest rate on loans for house purchase at a variable rate and with a initial rate fixation for up to one year decreased 5 basis points to 4.79%, driven by both the interest rate effect and the weighting effect. The rate on housing loans with an initial rate fixation period of more than one and up to five years remained almost constant at 4.00%. The interest rate on loans for house purchase with an initial rate fixation period of more than five and up to ten years decreased by 7 basis points, to 3.57%, driven by the interest rate effect. The rate on housing loans with an initial rate fixation period of more than ten years fell by 5 basis points to 3.44%. In the same period, the interest rate on new loans to households for consumption decreased 9 basis points, to 7.82%, driven by the interest rate effect.
Regarding new household deposits, the interest rate on term deposits of up to one year remained practically unchanged at 3.19%. The interest rate on deposits available with three months’ notice remained almost constant at 1.71%. The interest rate on household demand deposits remained practically unchanged at 0.39%.

Table 2

Bank interest rates for households

irf = initial rate setting
* For this category of instruments, the concept of new business extends to all outstanding balances and therefore the business volumes are not comparable with those of the other categories; Deposits placed by households and businesses are allocated to the household sector. Data on outstanding balances are derived from the balance sheet statistics of the ECB’s monetary financial institutions.
** For this category of instruments, the concept of new business extends to all outstanding balances and therefore the business volumes are not comparable with those of the rest of the categories. Data on outstanding balances are derived from the balance sheet statistics of the ECB’s monetary financial institutions.

Bank interest rate data for households (Table 2)

More information

The data in Tables 1 and 2 can be viewed for each euro area country in the Bank Rate Statistics panel. In addition, tables containing further breakdowns of bank interest rate statistics, including composite borrowing cost indicators for all euro area countries, are available on the ECB Data Portal. The full set of bank interest rate statistics for both the euro area and individual countries can be downloaded from the ECB Data Portal. More information, including the publication schedule, is available under “Bank interest rates” in the statistics section of the ECB website.

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

Grades:

  • In this press release, “corporations” refers to non-financial corporations (sector S.11 of the European System of Accounts 2010, or ESA 2010), “households” refers to households and non-profit institutions serving of households (Sector S of the ESA 2010). 14 and S.15) and “banks” refers to monetary financial institutions, except central banks and money market funds (SEC 2010, sector S.122).
  • The composite indicators of the cost of borrowing are described in the article entitled “Assessing interest rate pass-through of retail banks in the euro area in times of financial fragmentation” in the August 2013 issue of the ECB Monthly Bulletin ( see 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 evolution of the composite indicators of the cost of borrowing in both tables cannot be explained by the monthly changes in the subcomponents shown. In addition, the table on bank interest rates for companies 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 individual deals. This is done both by reporting agents and when national and euro area averages are calculated. Thus, changes in the euro area average interest rates for new operations reflect, in addition to changes in interest rates, changes in the weights of each country’s new operations for the instrument categories in question. The “interest rate effect” and the “weighting effect” presented in this press release are derived from the Bennet index, which allows for the month-to-month evolution of euro area aggregate rates as a result of changes in interest rates. each country (the “interest rate effect”) must be separated from those caused by changes in the weights of individual countries’ contributions (the “weighting effect”). Due to rounding, it is possible that the “interest rate effect” interest rate” and the “weighting effect” combined do not coincide with the month-to-month evolution of euro area aggregate rates.
  • In addition to monthly euro area bank interest rate statistics for March 2024, this press release incorporates revisions to data from previous periods. Hyperlinks in the main body of the press release lead to data that may change in subsequent releases as a result of revisions. Unless otherwise indicated, these euro area statistics cover EU Member States that had adopted the euro at the time the data relates.
  • Starting from the December 2014 reference period, the sectoral classification applied to bank interest rate statistics is based on the European System of Accounts 2010 (ESA 2010). In accordance with the ESA 2010 classification and unlike ESA 95, the non-financial corporations sector (S.11) now excludes non-management holding companies and similar captive financial institutions.