Bank interest rate spread up in December

The interest rate spread between loan and deposit rates increased to 4.53 percentage points in December, from 4.48 points in the previous month, as the overall weighted average interest rate on new deposits marginally decreased, while the average interest rate on new loans remained almost unchanged, the Bank of Greece said on Thursday.

The central bank, in a monthly report, said that the overall weighted average interest rate on all new deposits marginally decreased by 3 basis points to 0.32%. In particular, the average interest rate on overnight deposits placed by households remained almost unchanged at 0.10%. The average interest rate on overnight deposits placed by non-financial corporations decreased by 4 basis points to 0.13%. The average interest rate on deposits from households with an agreed maturity of up to 1 year remained almost unchanged at 0.70%.

The overall weighted average interest rate on all new loans to households and corporations remained almost unchanged at 4.85%, in December 2016.

The average interest rate on corporate loans without a defined maturity decreased by 5 basis points to 5.65%. The corresponding rate on loans to sole proprietors remained almost unchanged at 7.34%. The average interest rate on corporate loans with a defined maturity at a floating rate increased by 6 basis points to 4.67%. In particular, the rate on loans of up to 250,000 euros decreased by 14 basis points to 5.28%, on loans of over 250,000 euros and up to 1 million increased by 22 basis points to 5.06%, while the rate on loans of over 1 million increased by 5 basis points to 4.59%. Finally, the average interest rate on housing loans at a floating rate increased by 21 basis points to 2.83%.

In December 2016, the overall weighted average interest rates on the outstanding amounts of all deposits and all loans decreased. The spread between loan and deposit rates decreased to 4.41 percentage points, compared with 4.48 points in the previous month.