Statistical indicators of interest rates^[1] of credit institutions on their main sources of funds (transaction accounts and time deposits) mostly continued their years-long downward trend or stagnation in July 2022.

As regards transaction accounts (current and giro), the averages of interest rates on kuna and foreign currency accounts of households were at the same level in July 2022 as in July 2021 and stood at 0.01%. The averages of interest rates on kuna and foreign currency transaction accounts of non-financial corporations were 0.00% and 0.01% respectively, with both averages being 0.01 percentage point lower than in July 2021.

In July 2022, the average of interest rates on household time deposits in kuna stood at 0.05% (0.03 percentage points lower than in the same month of the previous year), while the average of interest rates on kuna time deposits of non-financial corporations was 0.04% (up by 0.02 percentage points from July 2021). The averages of interest rates on short-term and long-term household time deposits in euro stood at 0.09% and 0.1% respectively in July 2022.

Statistical indicators of interest rates of credit institutions on the most important types of loans granted to households in July 2022 mostly continued their years-long decline, unlike the indicators for non-financial corporations.

As for the main categories of household loans, the highest average of interest rates in July 2022 was recorded for kuna loans in the form of transaction account overdrafts (6.96%, down 0.39 percentage points from July 2021) and the lowest average was seen in housing loans indexed to foreign currency (2.49%, down by 0.07 percentage points from July 2021).

As regards the main categories of loans to non-financial corporations, the highest average of interest rates in July 2022 was seen in long-term kuna loans (2.79%, up by 0.38 percentage points from July 2021) and the lowest average was recorded in short-term euro loans (1.17%, up by 0.61 percentage points from July 2021). In addition to the increase in interest rates on the latter type of loans, interest rates on short-term loans in USD witnessed an even larger change (up by 1.6 percentage points from July 2021), especially in the last few months of 2022.

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 and sector to which deposits and loans relate. ↑