Euro area corporate loan costs rise, household deposit rates increase

The weighted indicator for corporate loan financing costs in the euro area increased by 7 basis points to 3.57 percent in December 2025. This rise was particularly pronounced for larger loans.

New loans exceeding €1 million with variable rates or an initial interest fixation period of up to three months saw a 16 basis point increase, reaching 3.31 percent.

Loans of the same magnitude with an initial fixation between three months and one year experienced an even sharper rise of 23 basis points, climbing to 3.57 percent.

Long-term corporate loans, specifically those over €1 million with an initial fixation exceeding ten years, also saw their rates increase by 16 basis points to 3.65 percent.

In contrast, smaller new loans up to €250,000 with variable rates or short-term fixation remained largely stable at 3.65 percent.

For corporate deposits, the weighted interest rate for new term deposits up to one year was almost constant at 1.93 percent, while rates for overnight deposits remained unchanged at 0.52 percent.

Loans to sole proprietorships and partnerships with variable rates or initial fixation up to one year decreased by 19 basis points to 3.81 percent, indicating a divergent trend for smaller business entities.

The weighted indicator for housing loan financing costs for private households remained largely unchanged in December 2025, holding at 3.32 percent.

Most categories of housing loans, including those with variable rates or initial fixation periods up to one year (3.55 percent), one to five years (3.37 percent), and five to ten years (3.48 percent), showed little to no movement.

Long-term housing loans (over ten years) also held steady at 3.13 percent.

A notable exception was new consumer loans to private households, which saw a significant decrease of 18 basis points, falling to 7.15 percent.

On the deposit side for households, the weighted interest rate for new term deposits increased by 5 basis points to 1.85 percent.

However, specific categories like term deposits up to one year (1.77 percent), deposits with an agreed notice period of up to three months (1.22 percent), and overnight deposits (0.25 percent) remained largely consistent or unchanged.