In the quarterly period up to April 2023, the statistical indicators of interest rates^[1] of credit institutions on their main sources of funds continued their upward trend started in the second half of 2022.

As regards credit institutions’ main sources of funds from the household sector, the average of interest rates on savings deposits in April 2023 remained unchanged from April last year and stood at 0.17%. The averages of interest rates on time deposits in euro continued to grow significantly from the values recorded in 2022, and in April 2023 reached 1.62% for short-term deposits and 0.50% for long-term deposits. As a reflection of the interest rates approved on larger amounts with an original maturity up to one month, the average of interest rates for short-term time deposits increased by 1.52 percentage points from April 2022. Long-term time deposits recorded a less pronounced growth in the same period and reached 0.44 percentage points.

The averages of interest rates on euro time deposits of non-financial corporations reached 2.18% for short-term deposits and 1.10% for long-term deposits in April 2023.

Short-term deposits recorded a growth of 2.02 percentage points relative to April 2022, hitting their highest level since 2012. Although long-term deposits recorded a decrease of 0.21 percentage points compared to the previous quarter, the average of interest rates is still considerably higher from the levels observed in April 2022.

Statistical indicators of interest rates of credit institutions on the most important types of loans granted to households and non-financial corporations mostly trended up from the second half of 2022, with the exception of loans in the form of transaction account overdrafts and credit card loans, which recorded a years-long decline in the averages of interest rates.

As for the main categories of household loans, the highest average of interest rates in April 2023 was recorded for general-purpose loans and other loans in euro, which reached 5.47%, the highest level since January 2019. The lowest average of interest rates in April 2023 of 2.99% was seen in euro housing loans, which also trended up from the second half of 2022. The average of interest rates on loans in the form of transaction account overdrafts stood at 5.30% in April 2023, while for credit card loans the average of interest rates in the same month was 4.72%.

As regards the main categories of loans to non-financial corporations, the averages of interest rates on short-term and long-term loans continued their upward trend in April 2023. In April 2023, the averages of interest rates on short-term and long-term loans to non-financial corporations in euro were 3.57% and 5.16% respectively. This is an increase of 0.73 and 1.26 percentage points from January 2023 and of 2.47 and 3.17 percentage points from April 2022 for short-term and long-term loans respectively.

Statistical time series: Credit institutions’ interest rates

1. Statistical indicators of interest rates are calculated as weighted monthly averages of agreed (nominal) interest rates on new deposit and loan contracts between credit institutions and their clients from the household sector (citizens and non-profit organisations) and the non-financial corporate sector (corporations outside the financial sector and the government sector) in a given month. New contracts include all contracts that specify for the first time the interest rate, and all renegotiations of the terms and conditions of the existing contracts. The weights used in the calculation are contracted amounts of newly received deposits and newly granted loans, with the exception of transaction accounts and demand deposits as well as transaction account overdrafts and credit card loans, which are assumed to be contractually renewed each month, but in indefinite amounts; for this reason, the weights used are their corresponding book balances at the end of a month. Indicators that are being calculated differ according to the instrument, currency, maturity, type of interest rate, loan size and institutional sector to which deposits and loans relate. As for data before 2023, a kuna loan/deposit indexed to euro is also considered to be a euro loan/deposit (except for savings deposits, transaction account overdrafts and credit card loans where all currencies are included). ↑