Greek banks’ loan/deposit interest rate spread slightly down in March

The interest rate spread between Greek banks’ loans and deposits eased slightly to 4.16 pct in March from 4.22 pct in the previous month, the Bank of Greece said on Monday.

The central bank, in a monthly report said the average lending interest rate eased by 0.06 pct in March to 4.47 pct, while the average deposit interest rate was almost unchanged at 0.31 pct.

The Bank of Greece said the average weighted interest rate of all new loans to households and enterprises fell 0.06 pct in March to 4.47 pct.

The overall weighted average interest rate on all new deposits stood at 0.31%, unchanged from the previous month. In particular, the average interest rate on overnight deposits placed by households remained unchanged at 0.09%, while the average interest rate on overnight deposits placed by non-financial corporations increased to 0.18% from 0.15% in the previous month. The average interest rate on deposits from households with an agreed maturity of up to 1 year remained almost unchanged at 0.66%.

The overall weighted average interest rate on all new loans to households and corporations decreased by 6 basis points from the previous month to 4.47% in March 2017. More specifically, the average interest rate on consumer loans without a defined maturity (a category which comprises credit cards, open account loans and overdrafts) remained unchanged at 14.54%. The average interest rate on consumer loans with a defined maturity at a floating rate decreased by 98 basis points to 6.58%.

The average interest rate on corporate loans without a defined maturity decreased by 8 basis points to 5.59%. In March 2017, the overall weighted average interest rate on the outstanding amounts of all deposits remained unchanged, while the overall weighted average interest rate on all loans decreased.

The spread between loan and deposit rates decreased to 4.40 percentage points, from 4.45 points in the previous month.