Comparison of interest rates on deposits and loans: Lithuania and the euro area

For the first time, the Bank of Lithuania published a comparison of interest rates on deposits with agreed maturity (term deposits) and loans of Lithuanian and euro area credit institutions (banks, credit unions). It takes into account the key ECB interest rate developments and their impact on interest rates on loans. The charts include euro area counties, the data of which are published on the ECB’s website. More information is available on the ECB Data Portal. With regard to the relevance of the data and their comparison, the Bank of Lithuania intends to publish the data periodically.

“This information will provide an opportunity not only to conveniently and easily analyse how interest rates on deposits and loans have evolved in Lithuania since 2015 (when the euro was introduced), but also to compare the developments in our country with the trends in the euro area and to access the latest available data on individual countries. We illustrate the data with charts and provide explanations,” says Ramūnas Baravykas, Director of the Data and Statistics Department of the Bank of Lithuania.

The interest rates¹ on new business² of deposits with agreed maturity and loans of euro area credit institutions published by the ECB show that:

• the rise in interest rates, which started in 2022, continued in 2023, and Lithuania became one of the euro area countries with the highest interest rates on deposits and loans in June 2023;
• interest rates on household deposits with agreed maturity with both Lithuanian and euro area credit institutions have been increasing since the beginning of 2022 and went up by 2.24 percentage points and 1.23 percentage points respectively in the first six months of 2023, to 3.26% and 2.70% respectively in June (see Chart 1);

Chart 1. Interest rates on and volumes of new business of household deposits with agreed maturity

• interest rates on non-financial corporation deposits with both Lithuanian and euro area credit institutions have been increasing since mid-2022 and went up by 1.96 percentage points and 1.33 percentage points respectively in the first six months of 2023, to 3.24% and 3.16% respectively in June (see Chart 2);

Chart 2. Interest rates on and volumes of new business of non-financial corporation deposits with agreed maturity

• interest rates on loans to households for consumption by both Lithuanian and euro area credit institutions increased by 0.28 percentage points and 0.98 percentage points respectively in the first six months of 2023, to 9.45% and 7.43% respectively in June (see Chart 3);

Chart 3. Interest rates on and volumes of new business of household loans for consumption

• interest rates on loans to households for house purchase by euro area credit institutions have been rising since the beginning of 2022 and those by Lithuanian credit institutions since mid-2022. In the first six months of 2023, interest rates on loans to household for house purchase granted by Lithuanian and euro area credit institutions went up by 1.24 percentage points and 0.87 percentage points respectively, to 5.58% and 3.75% respectively in June (see Chart 4);

Chart 4. Interest rates on and volumes of new business of household loans for house purchase

• interest rates on loans to households for other purposes by both Lithuanian and euro area credit institutions have been rising since the beginning of 2022 and went up by 0.93 percentage points and 1.28 percentage points respectively in the first six months of 2023, to 7.52% and 5.05% respectively in June (see Chart 5);

Chart 5. Interest rates on and volumes of new business of household loans for other purposes

• interest rates on loans to non-financial corporations by both Lithuanian and euro area credit institutions have been rising since mid-2022 and increased by 1.27 percentage points and 1.34 percentage points respectively in the first six months of 2023, to 6.07% and 4.78% respectively in June (see Chart 6).

Chart 6. Interest rates on and volumes of new business of loans to non-financial corporations

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¹ Weighted interest rates on new business during the reporting month, in percentages per annum.

² New business covers financial contracts that specify for the first time the interest rate on a loan or the deposit rate, and contracts for existing loans or deposits, which were renegotiated. New business does not cover revolving loans and overdrafts, as well as credit card debt. New business deposits do not cover automatic renegotiations of existing deposit contracts.

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Statistics, Monetary and financial statistics