Bank of Greece: Loan/deposit interest rate spread up in July

The spread between loan and deposit interest rates increased to 4.41 percentage points in July, as the overall weighted average interest rate on new deposits remained almost unchanged, whereas the overall weighted average interest rate on new loans increased, the Bank of Greece said on Monday.

In a monthly report, the central bank said that the overall weighted average interest rate on all new deposits remained almost unchanged at 0.30 pct. In particular, the average interest rates on overnight deposits placed by households and by non-financial corporations remained unchanged at 0.09 pct and 0.14 pct, respectively. The overall weighted average interest rate on all new loans to households and non-financial corporations increased by 32 basis points to 4.71 pct.

More specifically, the average interest rate on consumer loans without a defined maturity decreased by 4 basis points to 14.34 pct. The average interest rate on consumer loans with a defined maturity at a floating rate increased by 186 basis points to 10.32 pct.

The average interest rate on corporate loans without a defined maturity decreased by 5 basis points to 5.19 pct. Τhe corresponding rate on loans to sole proprietors decreased also by 5 basis points to 6.95 pct. The average interest rate on corporate loans with a defined maturity at a floating rate increased by 44 basis points to 3.82 pct. The average interest rate on housing loans at a floating rate increased by 8 basis points to 3.05 pct.

In July 2018, the overall weighted average interest rate on the outstanding amounts of all deposits remained almost unchanged, while the corresponding rate on all loans decreased. The spread between loan and deposit rates decreased to 4.04 percentage points.