Bank interest rates | ECB Data Portal (2024)

Bank interest rate statistics consist of data on interest rates that resident monetary financial institutions (MFIs) except central banks and money market funds apply to the euro-denominated deposits of, and loans to, households and non-financial corporations resident in the euro area, as well as data on the volumes involved. These harmonised statistics are used to analyse monetary developments and the monetary transmission mechanism, and to monitor financial stability.

Bank interest rate statistics, collected on a monthly basis, provide indicators covering all essential instrument categories for euro-denominated deposits and loans. It also covers for the non-euro area countries deposits and loans denominated in national currency vis-à-vis households and non-financial corporations resident in the reporting country.

There are breakdowns by original and residual maturity, period of notice and next interest rate reset, as well as initial period of interest rate fixation. Loans to households are further broken down by the purpose of the loan, while new loans to non-financial corporations are categorised according to the size of the loan. In addition, information on loans with collateral and/or guarantees is collected.

The statistics are produced for the euro area as a whole and individually for each EU Member State. The euro area bank interest rate statistics are calculated for each of the 117 instrument categories as a weighted average of interest rates in individual countries.

Statistics on interest rates applied by monetary financial institutions (except central banks and money market funds) to deposits and loans vis-á-vis households and non-financial corporations, both for New Business and Outstanding Amounts.

Interest rates and corresponding volumes on: Deposits with MFIs from households, Deposits with MFIs from non-financial corporations, Loans granted by MFIs to households, Loans granted by MFIs to non-financial corporations.

Risk Assessment Indicators

This section gathers non-standard indicators derived from MFI interest rate statistics. These indicators, primarily designed for macroprudential analysis and systemic risk monitoring, nowadays are also used by a wider audience. This dataset currently comprises two sets of indicators: (i)share of variable-rate loans in total loansand (ii)annualgrowth rate of new loans to households and non-financial corporations.

(i)Share of variable-rate loans in total loans

Two indicators are available for each EU Member State:

oshare of variable rate loans in total loans to households and non-financial corporations;

oshare of variable rate loans in total loans for house purchase.

These indicators are calculated by dividing the new business volumes of loans with a floating rate or an initial rate fixation of up to one year by the total new business volume, all interest rates fixations combined.

(ii) Annual growth rate of new loans to households and non-financial corporations

This indicator is available for each EU Member State. It is derived using a 12-month moving average of new loans to households and non-financial corporations.

Methodology

Bank interest rate statistics refer to the interest rates that are individually agreed between a bank and its customers. They can therefore be different from the advertised rates, as households and non-financial corporations may be able to negotiate better terms and conditions than those advertised. Bank interest rates are converted to an annual basis and quoted in percentages per annum.

Bank interest rate statistics refer to instrument categories rather than to individual products. The instrument categories are largely consistent with those of the MFI balance sheet statistics. The coverage of the various instrument categories in the MFI balance sheet statistics is defined in Regulation (EU) No 1071/2013 of the ECB concerning the balance sheet of the monetary financial institutions sector (ECB/2013/33).

In the case of deposits, banks pay interest to their customers, but they may also charge fees. By analogy, for a loan, the customer has to pay an amount comprising an interest rate component and a component made up of other related charges. All but two bank interest rate indicators exclude these charges. The two exceptions are the series collected for consumer credit and lending to households for house purchase, where – in addition to a rate without charges – the annual percentage rate of charge (APRC) is also computed. The APRC is the effective lending rate that covers the total costs of the credit to the consumer.

Of the 117 indicators referred to above, 91 relate to new business and 26 to outstanding amounts.

New business is defined as any new agreement between a customer and a bank. New agreements are:

· all financial contracts that specify, for the first time, the interest rate on a deposit or loan; and

· all new negotiations of existing deposits and loans.

Existing deposit and loan contracts that are prolonged automatically, i.e. without the active involvement of the customer, and do not involve any renegotiation of the terms and conditions of the contract, including the interest rate, are not considered new business. Bank interest rate statistics on new business thus reflect the demand and supply conditions in the deposit and loan markets at the time of the agreement, including competition with other types of financial institutions and products. Interest rates on bad loans and loans for debt restructuring granted at rates below market conditions are excluded from these statistics.

Bank interest rates on new deposits with agreed maturity are broken down by the original maturity of the deposit, while interest rates on deposits redeemable at notice are divided into separate categories according to the period of notice . Bank interest rates on new loans are, in turn, broken down by initial period of interest rate fixation . Separate information is collected on interest rates on loans to non-financial corporations with a period of initial rate fixation of up to one year and original maturity of over one year.

As of reference period December 2014, additional information is collected on renegotiated loans . In particular, new indicators were introduced in Regulation ECB/2013/34 and in Guideline ECB/2014/15 referring to new negotiation of loans to households, broken down by purpose of loan, and new negotiation of loans to non-financial corporations. Both interest rates and corresponding business volumes are available.

Outstanding amounts are defined as the stock of all deposits held by customers, i.e. households and non-financial corporations, with banks and the stock of all loans extended by banks to their customers. An interest rate on outstanding amounts reflects the weighted average interest rate applied to the stock of deposits or loans in the relevant instrument category in the reference period:

· Interest rates on outstanding deposits cover all deposits held and not yet withdrawn by customers in all the periods up to and including the reporting date.

· Interest rates on outstanding loans cover all loans extended to and not yet repaid by customers in all the periods up to and including the reporting date, excluding bad loans and loans for debt restructuring at rates below market conditions.

MFI interest rates on outstanding amounts are hence statistics on the interest rates actually applied to all “open” deposits and loans. Interest rates on outstanding amounts are provided with a breakdown according to the original maturity of the deposit or loan. Further breakdowns by residual maturity and period of next interest rate reset are available for loans as of reference period December 2014.

Regulation ECB/2013/34 concerning statistics on interest rates applied by monetary and financial institutions (recast)

Regulation ECB/2014/30 amending Regulation ECB/2013/34 concerning statistics on interest rates applied by monetary financial institutions

Guideline ECB/2021/16 on monetary and financial statistics

Manual on MFI interest rate statistics

Short general description of MFI interest rate statistics

As an enthusiast with a comprehensive understanding of bank interest rate statistics, let me demonstrate my expertise by delving into the various concepts mentioned in the provided article.

Bank Interest Rate Statistics Overview: Bank interest rate statistics encompass data on interest rates applied by resident monetary financial institutions (MFIs) excluding central banks and money market funds. This data pertains to euro-denominated deposits and loans for households and non-financial corporations in the euro area. It includes information on volumes and serves as a crucial tool for analyzing monetary developments, monetary transmission mechanisms, and monitoring financial stability.

Instrument Categories and Breakdowns: These harmonized statistics, collected monthly, cover essential instrument categories for euro-denominated deposits and loans. The breakdowns include original and residual maturity, period of notice, next interest rate reset, and initial period of interest rate fixation. For non-euro area countries, the statistics also include deposits and loans denominated in national currency vis-à-vis households and non-financial corporations.

Loan Categorization: Loans to households are further categorized by the purpose of the loan, while new loans to non-financial corporations are classified based on the size of the loan. Information on loans with collateral and/or guarantees is also collected, providing a comprehensive view of the lending landscape.

Geographical Coverage: The statistics are produced for the entire euro area and individually for each EU Member State. The euro area bank interest rate statistics are calculated as a weighted average of interest rates in individual countries across 117 instrument categories.

Interest Rate and Volume Data: The article specifies the types of interest rates and corresponding volumes covered, including deposits with MFIs from households, deposits with MFIs from non-financial corporations, loans granted by MFIs to households, and loans granted by MFIs to non-financial corporations.

Risk Assessment Indicators: Non-standard indicators derived from MFI interest rate statistics are introduced for macroprudential analysis and systemic risk monitoring. These include the share of variable-rate loans in total loans and the annual growth rate of new loans to households and non-financial corporations.

Methodology: The methodology section highlights that bank interest rate statistics refer to individually agreed interest rates between banks and customers. They emphasize that these rates may differ from advertised rates, as negotiations can lead to better terms. Interest rates are converted to an annual basis and quoted as percentages per annum.

Definition of New Business and Outstanding Amounts: The article defines new business as any new agreement between a customer and a bank, specifying that it reflects demand and supply conditions in the deposit and loan markets at the time of the agreement. Outstanding amounts refer to the stock of all deposits and loans held by customers with banks.

Regulations and Guidelines: The data collection is governed by regulations such as Regulation ECB/2013/34, Regulation ECB/2014/30, and Guideline ECB/2021/16. These regulations provide a framework for gathering statistics on interest rates applied by monetary and financial institutions.

In summary, bank interest rate statistics are a comprehensive tool for analyzing monetary trends, financial stability, and systemic risks. The detailed breakdowns and categorizations ensure a thorough understanding of interest rate dynamics across various financial instruments and regions, contributing to informed economic analysis and policymaking.

Bank interest rates | ECB Data Portal (2024)
Top Articles
Latest Posts
Article information

Author: Pres. Lawanda Wiegand

Last Updated:

Views: 5955

Rating: 4 / 5 (71 voted)

Reviews: 94% of readers found this page helpful

Author information

Name: Pres. Lawanda Wiegand

Birthday: 1993-01-10

Address: Suite 391 6963 Ullrich Shore, Bellefort, WI 01350-7893

Phone: +6806610432415

Job: Dynamic Manufacturing Assistant

Hobby: amateur radio, Taekwondo, Wood carving, Parkour, Skateboarding, Running, Rafting

Introduction: My name is Pres. Lawanda Wiegand, I am a inquisitive, helpful, glamorous, cheerful, open, clever, innocent person who loves writing and wants to share my knowledge and understanding with you.