4 October 2018
Euro area bank interest rate statistics: August 2018
- The composite cost-of-borrowing indicator for new loans to corporations remained broadly unchanged at 1.65% in August 2018.
- The composite cost-of-borrowing indicator for new loans to households for house purchase remained unchanged at 1.81% in August 2018.
- In the same month, the euro area composite interest rate for new deposits from both corporations and households remained broadly unchanged at 0.11% and 0.33%, respectively.
Bank interest rates for corporations
Bank interest rates on new loans to, and deposits from, euro area corporations
(percentages per annum)
While the composite cost-of-borrowing indicator, which combines interest rates on all loans to corporations, remained broadly unchanged, August 2018 saw mixed developments in the cost of new borrowing by corporations both for small loans of up to €250,000 and for loans of over €1 million. For example, 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 remained unchanged at 1.14%. The rate for new loans of the same size with an initial rate fixation period of over ten years decreased by 15 basis points to 1.75%. This decrease was due to the developments in three euro area countries and was driven mainly 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 increased by 5 basis points to 2.21%. This increase 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 more or less constant at 0.08% in August 2018.
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 remained unchanged at 2.44%.
i.r.f. = initial rate fixation
Bank interest rates for households
Bank interest rates on new loans to, and deposits from, euro area households
(percentages per annum)
The composite cost-of-borrowing indicator, which combines interest rates on all loans to households for house purchase, remained unchanged in August 2018. The interest rate on loans for house purchase with a floating rate and an initial rate fixation period of up to one year and on housing loans with an initial rate fixation period of over ten years remained unchanged at 1.63% and 1.85%, respectively. In the same period, the interest rate on new loans to households for consumption with a floating rate and an initial rate fixation period of up to one year rose by 38 basis points to 5.23%. The month-on-month change was essentially due to the developments in four euro area countries and was mostly driven by the interest rate effect.
Rates agreed on new deposits from households remained broadly unchanged in August 2018. The interest rate on deposits with an agreed maturity of up to one year remained basically unchanged at 0.29%, while the interest rate on deposits redeemable at three months' notice remained unchanged at 0.45%.
i.r.f. = initial rate fixation
* For this instrument category, the concept of new business is extended to the whole outstanding amounts and therefore it is not comparable with the business volumes of the other categories; deposits placed by households and corporations are allocated to the household sector. Volume data are derived from the ECB's monetary financial institutions balance sheet statistics.
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 in "Our statistics" 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.: +49 69 1344 8949.
- 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 (see Box 1).
- Interest rates on new business are weighted by the size of the individual agreements. This is done both by the reporting agents and when the national and euro area averages are computed. Thus changes in average euro area interest rates for new business reflect, in addition to changes in interest rates, changes in the weights of individual countries' new business for the instrument categories concerned. The "interest rate effect" and the "weight effect" presented in this press release are derived from the Bennet index, which allows month-on-month developments in euro area aggregate rates resulting from changes in individual country rates (the "interest rate effect") to be disentangled from those caused by changes in the weights of individual countries' contributions (the "weight effect"). Owing to rounding, the combined "interest rate effect" and the "weight effect" may not add up to the month-on-month developments in euro area aggregate rates.
- In addition to monthly euro area bank interest rate statistics for August 2018, this press release incorporates minor revisions to data for previous periods. The hyperlinks in the press release are dynamic; thus, the data might slightly change with the next monthly release due to revisions. Unless otherwise indicated, these euro area statistics cover the EU Member States that had adopted the euro at the time to which the data relate.
- As of reference period December 2014, the sector classification applied to bank interest rates statistics is based on the European System of Accounts 2010 (ESA 2010). In accordance with the ESA 2010 classification and as opposed to ESA 95, the non-financial corporations sector (S.11) now excludes holding companies not engaged in management and similar captive financial institutions.