Statistical press release: MFI interest rate statistics...ECB

4 April 2016                                  PRESS RELEASE

Euro area bank interest rate statistics: February 2016

 

Read full Report HERE PRESS RELEASE

  The composite cost-of-borrowing indicator for new loans to corporations1 decreased by 11 basis points from the previous month to 1.98% in February 2016, reaching for the first time a value below 2%. 

The composite cost-of-borrowing indicator for new loans to households1 for house purchase remained broadly unchanged at 2.20% in February.

 In the same month, the euro area composite interest rate for new deposits from corporations remained broadly unchanged while the one from households decreased.

Bank interest rates for corporations 

Following the development of the composite cost-of-borrowing indicator, which combines interest rates on all loans to corporations, February 2016 saw a decrease 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 decreased by 11 basis points from the previous month to 1.28%. This month-on-month decrease was driven by the interest rate effect which outweighed changes in the corresponding weights. The rate for new loans of the same size with an initial rate fixation period of over ten years decreased by 16 basis points to 2.02%. In the case of new loans of up to €250,000 with a floating rate and an initial rate fixation period of up to threemonths, the average rate charged decreased by 7 basis points to 3.16%. The month-on-month change was 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 0.23% in February 2016. 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 increased by 6 basis points to 2.63%.

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European Central Bank
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