Euro area bank interest rate statistics: August 2020

Press release

1 October 2020

Euro area bank interest rate statistics: August 2020

• The composite cost-of-borrowing indicator for new loans to corporationsand for new loans to households for house purchaseshowed no change in August 2020, at 1.51% and at 1.40%, respectively.
• In the same month, the euro area composite interest rate fornew deposits with agreed maturity from corporationsremained broadly unchanged at -0.19%, and the interest rate for overnight
  deposits from corporationsshowed no change at 0.00%.
• The euro area composite interest rate fornew deposits with agreed maturity from householdsremained broadly unchanged at 0.23% in August 2020, and the interest rate forovernight deposits from householdsshowed no change at 0.02%.

Bank interest rates for corporations

Chart 1

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

(percentages per annum)

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

European Central Bank

Directorate General Communications, Global Media Relations Division

Sonnemannstrasse 20, 60314 Frankfurt am Main, Germany

Tel.: [phone], e-mail:[e-mail], website: www.ecb.europa.eu

Reproduction is permitted provided that the source is acknowledged.

Press release / 1 October 2020

Euro area bank interest rate statistics: August 2020

The composite cost-of-borrowing indicator, which combines interest rates on all loans to corporations, showed no change in August 2020. 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 6 basis points to 1.29%, mainly driven by the interest rate effect. The rate for new loans of the same size with an initial rate fixation period of over three months and up to one year increased by 13 basis points to 1.30%. This increase was due to developments in three euro area countries and was mostly driven by the weight effect. The rate for new loans of over €1 million with an initial rate fixation period of over ten years decreased by 6 basis points to 1.19%, driven by both interest rate and weight effects. 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 decreased by 10 basis points to 1.88%. This decrease was due to developments in one euro area country and was 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 stayed almost constant at -0.20% in August 2020. The interest rate on overnight deposits from corporations stayed constant at 0.00%.

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 decreased by 22 basis points to 2.05%. This decrease was due to developments in three euro area countries and was mostly driven by the weight effect.

Table 1

Bank interest rates for corporations

i.r.f. = initial rate fixation

• For this instrument category, the concept of new business is extended to the whole outstanding amounts and therefore the business volumes are not comparable with those of the other categories. Outstanding amounts data are derived from the ECB's monetary financial institutions balance sheet statistics.

Data for bank interest rates for corporations (Table 1)

European Central Bank

Directorate General Communications, Global Media Relations Division

Sonnemannstrasse 20, 60314 Frankfurt am Main, Germany

Tel.: [phone], e-mail:[e-mail], website: www.ecb.europa.eu

Reproduction is permitted provided that the source is acknowledged.

Press release / 1 October 2020

Euro area bank interest rate statistics: August 2020

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, showed no change in August 2020. The interest rate on loans for house purchase with a floating rate and an initial rate fixation period of up to one year and the interest rate on loans for house purchase with an initial rate fixation period of over five and up to ten years remained broadly unchanged at 1.42% and at 1.31%, respectively. The interest rate on housing loans with an initial rate fixation period of over one and up to five years and the interest rate on housing loans with an initial rate fixation period of over ten years stayed almost constant at 1.61% and at 1.40%, respectively. In the same period, the interest rate on new loans to households for consumption rose by 15 basis points to 5.36%. This increase was due to developments in one euro area country and was driven by the interest rate effect.

As regards new deposits from households, the interest rate on deposits with an agreed maturity of up to one year remained broadly unchanged at 0.17% in August 2020. The interest rate on deposits redeemable at three months' notice and the interest rate on overnight deposits from households showed no change at 0.35% and at 0.02%, respectively.

European Central Bank

Directorate General Communications, Global Media Relations Division

Sonnemannstrasse 20, 60314 Frankfurt am Main, Germany

Tel.: [phone], e-mail:[e-mail], website: www.ecb.europa.eu

Reproduction is permitted provided that the source is acknowledged.

Press release / 1 October 2020

Euro area bank interest rate statistics: August 2020

Table 2

Bank interest rates for households

i.r.f. = initial rate fixation

• For this instrument category, the concept of new business is extended to the whole outstanding amounts and therefore the business volumes are not comparable with those of the other categories; deposits placed by households and corporations are allocated to the household sector. Outstanding amounts data are derived from the ECB's monetary financial institutions balance sheet statistics.
• For this instrument category, the concept of new business is extended to the whole outstanding amounts and therefore the business volumes are not comparable with those of the other categories. Outstanding amounts data are derived from the ECB's monetary financial institutions balance sheet statistics.

Data for bank interest rates for households (Table 2)

Further information

Tables containing further breakdowns of bank interest rate statistics, including the composite cost-of- borrowing indicators for all euro area countries, are available from the ECB's Statistical Data Warehouse. A subset is visually presented at www.euro-area-statistics.org.The full set of bank interest rate statistics for both the euro area and individual countries can be downloaded from SDW. More information, including the release calendar, is available under "Bank interest rates" in the statistics section of the ECB's website.

For media queries, please contact Alexandrine Bouilhet, tel.: [phone].

European Central Bank

Directorate General Communications, Global Media Relations Division

Sonnemannstrasse 20, 60314 Frankfurt am Main, Germany

Tel.: [phone], e-mail:[e-mail], website: www.ecb.europa.eu

Reproduction is permitted provided that the source is acknowledged.