Euro area bank interest rate statistics: December 2023

Bank interest rates for corporations

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

The composite cost-of-borrowing indicator, which combines interest rates on all loans to corporations, remained broadly unchanged in December 2023. 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 12 basis points to 5.24%. The rate on new loans of the same size with an initial rate fixation period of over three months and up to one year fell by 8 basis points to 5.09%. The interest rate on new loans of over €1 million with an initial rate fixation period of over ten years showed no change at 3.87%. 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 fell by 21 basis points to 5.49%. 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 3.70% in December 2023. The interest rate on overnight deposits from corporations stayed almost constant at 0.84%. 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 14 basis points to 5.67%. 

Data for bank interest rates for corporations (Table 1) 

Bank interest rates for households  

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, decreased in December 2023, driven by the interest rate effect. The interest rate on loans for house purchase with a floating rate and an initial rate fixation period of up to one year remained broadly unchanged at 4.86%. The rate on housing loans with an initial rate fixation period of over one and up to five years fell by 7 basis points to 4.24%. The interest rate on loans for house purchase with an initial rate fixation period of over five and up to ten years decreased by 8 basis points to 3.81%. The rate on housing loans with an initial rate fixation period of over ten years fell by 7 basis points to 3.63%. In the same period the interest rate on new loans to households for consumption decreased by 15 basis points to 7.70%, driven by both the interest rate and the weight effects. As regards new deposits from households, the interest rate on deposits with an agreed maturity of up to one year decreased by 4 basis points to 3.29%. The rate on deposits redeemable at three months' notice stayed almost constant at 1.65%. The interest rate on overnight deposits from households remained broadly unchanged at 0.37%. 

 Data for bank interest rates for households (Table 2)

Further information 

The data in Tables 1 and 2 can be visualised for individual euro area countries on the bank interest rate statistics dashboard. Additionally, 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 Data Portal. A subset is visually presented on the Euro Area Statistics dedicated website. The full set of bank interest rate statistics for both the euro area and individual countries can be downloaded from ECB Data Portal. More information, including the release calendar, is available under "Bank interest rates" in the statistics section of the ECB's website.  

Notes: 

• In this press release "corporations" refers to non-financial corporations (sector S.11 in the European System of Accounts 2010, or ESA 2010), "households" refers to households and non-profit institutions serving households (ESA 2010 sectors S.14 and S.15) and "banks" refers to monetary financial institutions except central banks and money market funds (ESA 2010 sector S.122). 

• 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). For these indicators, a weighting scheme based on the 24-month moving averages of new business volumes has been applied, in order to filter out excessive monthly volatility. For this reason the developments in the composite cost of borrowing indicators in both tables cannot be explained by the month-on-month changes in the displayed subcomponents. Furthermore, the table on bank interest rates for corporations presents a subset of the series used in the calculation of the cost of borrowing indicator. 

• 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' *