The Bank of Greece reported a slight narrowing in the interest rate spread between new bank loans and new customer deposits in September 2026.
Official data published by the central bank showed that the interest rate margin on new business fell to 4.36 percentage points, down from the previous month. The average return paid on new deposits rose slightly while the average cost of new borrowing eased.
At the same time, the interest rate spread on existing loan and deposit balances moved in the opposite direction. The margin between existing loans and deposits widened to 4.53 percentage points, driven by higher interest charges on outstanding credit portfolios.
For new transactions across the banking system, the weighted average interest rate on new deposits rose to 0.40 percent in September 2026, compared with 0.37 percent in August. Over the same period, the weighted average rate charged on new loans fell to 4.76 percent from 4.79 percent.
The interest rate spread represents the gap between what commercial lenders pay savers on deposits and what they charge borrowers for credit. This margin serves as the primary source of net interest income for financial institutions, determining both the return on household savings and the cost of capital across the economy.
Rates on new customer deposits
The slight rise in the overall return on new deposits reflected modest gains in term products rather than everyday accounts. The average interest rate on overnight deposits held by households remained unchanged at 0.03 percent in September. Overnight deposits placed by businesses remained virtually static as well, closing the month at 0.24 percent.
Savers who locked their money away for agreed terms secured higher yields. The average interest rate on household deposits with an agreed maturity of up to one year rose by 11 basis points to reach 1.28 percent. Greek businesses secured even higher returns on their fixed-term funds, with deposit rates for agreed maturities of up to one year rising by 19 basis points to 2.16 percent.
A basis point equals one-hundredth of a percentage point, or 0.01 percentage point. In Greece, overnight savings accounts represent the bulk of domestic retail deposits, meaning that most private savers see limited benefit from increases in wholesale interest rates until funds move into formal fixed-term contracts.
Borrowing costs for new loans
The overall weighted average rate on new lending to households and businesses settled at 4.76 percent, down by 3 basis points from August. Beneath that headline figure, borrowing costs showed divergent paths across consumer credit, mortgages, and corporate financing.
Consumer credit without a defined repayment term, a category that includes credit cards, revolving lines, and current account overdrafts, remained virtually flat at an elevated 14.61 percent. However, consumer loans issued with a specific maturity and a floating interest rate jumped by 49 basis points to 10.38 percent. Floating-rate mortgage loans also became more expensive, with the average rate increasing by 33 basis points to 3.72 percent.
In corporate lending, the average rate on business loans without a fixed repayment period climbed by 12 basis points to 4.87 percent. Rates on professional loans extended to sole proprietors and freelance professionals rose by 14 basis points to 7.04 percent. In contrast, new corporate loans with a fixed term and floating rate were unchanged at 4.35 percent, while floating-rate term loans to small and medium-sized enterprises fell by 5 basis points to 4.53 percent.
Examining new lending by transaction size revealed that smaller borrowers faced higher pricing pressures. The average interest rate on loans of up to 250,000 euros increased by 8 basis points to 5.02 percent. For mid-sized loans between 250,001 euros and 1 million euros, rates were virtually unchanged at 4.70 percent. For large corporate loans exceeding 1 million euros, the average rate held steady at 4.25 percent.
Existing loan and deposit portfolios
On outstanding balances across the banking sector, the overall weighted average deposit rate, including overnight holdings, remained almost unchanged at 0.39 percent in September 2026. Within that total, the average return on existing household term deposits with a maturity of up to two years held virtually flat at 1.23 percent. Existing business term deposits with maturities of up to two years climbed by 8 basis points to 2.17 percent.
The weighted average interest rate on all outstanding loans climbed by 8 basis points to reach 4.92 percent. This increase broadened the overall spread on legacy portfolios, as existing borrowing costs adjusted upward faster than deposit returns.
Long-term mortgage balances with a maturity of more than five years saw average rates rise by 4 basis points to 3.78 percent. Consumer and miscellaneous loans to private individuals and non-profit institutions also rose by 4 basis points to 8.55 percent. For existing corporate debt with a maturity exceeding five years, the average rate rose by 8 basis points to 4.49 percent, while rates on outstanding professional loans climbed by 13 basis points to 5.73 percent.
Central bank monitoring and public disclosure
The Bank of Greece, which serves as the national central bank within the Eurosystem and oversees domestic credit institutions from its headquarters in Athens, released the figures on November 2, 2026. The institution also shared the headline figures through its official social media channel, confirming the 4.76 percent new lending rate and 0.40 percent new deposit rate recorded in September.
