FRANKFURT, Nov 6 (Reuters) - Interest rates on euro-zone household and corporate loans in general rose in September, European Central Bank figures showed on Thursday.
September saw the intensification of the financial turmoil as U.S. investment bank Lehman Brothers collapsed, Merrill Lynch was sold and other financial giants moved into position for government bail outs.
The ECB said interest rates charged on business overdrafts, the main source of new corporate borrowing, increased to 6.91 percent from 6.77 percent in September.
Rates on business loans for up to one year, the next most common type of lending, rose to 6.34 percent from 6.27 percent for loans of up to and including 1 million euros. For larger sums rates jumped to 5.62 percent from 5.45 percent in the biggest increase since December.
The average interest rate on a new floating rate mortgage -- the type which accounts for almost half of new mortgage borrowing -- increased to 5.80 percent from 5.77 percent while rates on mortgages fixed for over 10 years, the second most common type of home loan, rose to 5.37 percent from 5.26 percent.
Following is a summary of the ECB data on interest rates offered on new deposits, overdrafts, loans and mortgages across the countries which use the euro as their national currency.
Sept 08 Aug 08 Sept 07
(annual percent rate)
HOUSEHOLDS Overnight deposits 1.32 1.29 1.16 Bank overdrafts 10.82 10.77 10.53 Mortgages, 10 year fix 5.12 5.12 4.74
NON-FINANCIAL CORPORATIONS Overnight deposits 2.20 2.17 1.91 Bank overdrafts 6.91 6.77 6.49 Loans, 1 mln euros, <1 year fix 6.36 6.34 5.90
For the full report, see: http://www.ecb.int/press/pdf/mfi/mir0811.pdf
(Reporting by Marc Jones; editing by Patrick Graham) Keywords: ECB/MFI
(marc.jones@thomsonreuters.com; +49 (0)69 7565 1219; reuters messaging: marc.jones.reuters.com@reuters.net)
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