Banks slightly lowered their lending rates in September, while keeping deposit rates unchanged, resulting in a narrowing of the spread between them.

According to the Bank of Greece (BoG), in September 2024, the weighted average interest rate on new deposits remained unchanged at 0.54%, while the corresponding interest rate on new loans fell to 5.61%. The interest rate spread between new deposits and loans decreased to 5.07 percentage points.

In the same month, the weighted average interest rate on all existing deposits remained almost unchanged at 0.52%, while the corresponding interest rate on loans decreased to 5.97%. The interest rate spread between existing deposits and loans decreased to 5.45 percentage points.

NEW DEPOSITS

The weighted average interest rate on new deposits remained unchanged at 0.54%, compared with the previous month.

In particular, the average interest rate on overnight deposits placed by households remained almost unchanged at 0.03%, while the corresponding rate on deposits placed by non-financial corporations stood at 0.19% compared with 0.16% in the previous month.

The average interest rate on deposits from households with an agreed maturity up to 1 year remained almost unchanged at 1.86%, while the corresponding rate on deposits from non-financial corporations remained unchanged at 2.98%.

NEW LOANS

The weighted average interest rate on new loans to households and non-financial corporations decreased by 23 basis points to 5.61%.

More specifically, the average interest rate on consumer loans without a defined maturity (a category that comprises credit cards, revolving loans and overdrafts) decreased by 6 basis points to 14.87%.

The average interest rate on consumer loans with a defined maturity at a floating rate decreased by 40 basis points to 12.04%, while the average interest rate on housing loans at a floating rate decreased by 18 basis points to 4.28%.

The average interest rate on corporate loans without a defined maturity decreased by 14 basis points to 6.29%. The corresponding rate on loans to sole proprietors decreased by 9 basis points to 7.31%.

The average interest rate on new corporate loans with a defined maturity at a floating rate decreased by 33 basis points to 5.25%. The average interest rate on loans with a defined maturity at a floating rate to small and medium-sized enterprises (SMEs) decreased by 10 basis points to 5.57%. 

As regards the structure of interest rates according to the size of loans granted, the average rate on loans of up to €250,000 increased by 23 basis points to 6.04%, on loans of over €250,000 and up to €1 million it decreased by 9 basis points to 5.55%, while on loans of over €1 million it decreased by 32 basis points to 5.21%.

2. Interest rates on outstanding amounts of euro-denominated deposits and loans

DEPOSITS

The weighted average interest rate on outstanding amounts of deposits (including overnight deposits) remained almost unchanged at 0.52% compared to the previous month.

In particular, the average interest rate on outstanding amounts of deposits with an agreed maturity of up to 2 years placed by households remained unchanged at 1.85%, while the corresponding rate on deposits placed by non-financial corporations stood at 2.86% compared with 2.89% in the previous month.

LOANS

The weighted average interest rate on outstanding amounts of loans decreased by 9 basis points at 5.97%.

In particular, the average interest rate on outstanding amounts of housing loans with over 5 years’ maturity remained almost unchanged at 4.30%. The corresponding rate on consumer and other loans to individuals and private non-profit institutions remained unchanged at 8.37%.

The average interest rate on corporate loans with over 5 years’ maturity decreased by 8 basis points to 5.79%. The corresponding rate on loans to sole proprietors decreased by 10 basis points to 6.62%.