See also
Film about the BCL's missions and tasks
Interest rates
13.07.2021
The Banque centrale du Luxembourg (BCL) informs that, based on preliminary data, the main interest rates applied by Luxembourg’s credit institutions to euro area households and non-financial corporations (NFCs) for their loan and deposit operations have on average evolved as follows in May 2021.
Representative interest rates on new contracts[1] – loans and deposits – concluded with households
The variable[2] interest rate on mortgage loans granted to households has decreased by 2 basis points on a monthly basis to reach 1.33% in May 2021 and the volume of these newly granted loans has decreased by 17 million euros to reach 263 million euros. On a yearly basis, the interest rate has decreased by 5 basis points whereas the volume of newly granted loans has increased by 72 million euros.
The fixed[3] interest rate on mortgage loans granted to households has increased by 2 basis points on a monthly basis to reach 1.33% in May 2021 while the volume of these newly granted loans has decreased by 41 million euros to reach 476 million euros. On a yearly basis, this interest rate did not evolve whereas the volume of newly granted loans has increased by 40 million euros.
The interest rate on consumer loans that have an initial fixation period above 1 year and below or equal to 5 years has increased by 38 basis points on a monthly basis to reach 2.52% in May 2021 whereas the volume of newly granted loans has decreased by 5 million euros to reach 27 million euros. On a yearly basis, the interest rate has increased by 8 basis points whereas the volume of new lending has increased by 5 million euros.
The interest rate on households’ fixed-term deposits that have an initial maturity below or equal to 1 year has reached 1 basis points in May 2021 from 5 basis points during the previous reference period. On a yearly basis, this rate has decreased by 2 basis points.
Representative interest rates on new contracts1 – loans and deposits – concluded with NFCs
The variable2 interest rate on loans below or equal to 1 million euros granted to NFCs has increased by 4 basis points on a monthly basis to reach 1.41% in May 2021 and the volume of newly granted loans has decreased by 41 million euros to reach 706 million euros. On a yearly basis, this interest rate has decreased by 27 basis points and the volume of newly granted loans has increased by 100 million euros.
The variable2 interest rate on loans above 1 million euros granted to NFCs has increased by 10 basis points on a monthly basis to reach 0.91% during the last reference period. The volume of newly granted loans has decreased by 739 million euros to reach 3 377 million euros. On a yearly basis, this interest rate has decreased by 20 basis point and the volume of newly granted loans has decreased by 445 million euros.
The interest rate on fixed-term deposits of NFCs with an initial maturity below or equal to 1 year has decreased by 36 basis points on a monthly basis to reach -43 basis points in May 2021. On a yearly basis, this interest rate has decreased by 30 basis point.
The tables pertaining to interest rates applied to credit institutions can be consulted and/or downloaded on the BCL’s website on the following pages:
http://www.bcl.lu/en/statistics/series_statistiques_luxembourg/03_Capital_markets/index.html
Weighting method
The interest rates applied to new contracts are weighted within the categories of instruments concerned by the amounts of individual contracts. This results from the compilation of national aggregates carried out by reporting credit institutions and by the BCL.
[1] New contracts refer to any new agreement concluded between the household or the non-financial corporation and the reporting agent. New contracts include all financial contracts which mention for the first time the interest rate pertaining to the deposit or credit and all renegotiations of existing deposits or credits.
[2] Variable interest rate or rate with an initial fixation period inferior or equal to 1 year.
[3] Fixed interest rate weighted by the amounts of contracts for all mortgage loans granted, whatever the initial rate fixation period (above 1 year). This series has been published by the BCL since February 2009 only for methodological reasons linked to the identification of reporting agents.
