Banks lowered deposit and lending rates in 1996 by an average of 3.7 percentage points

The banks lowered deposit and lending rates during 1996, in each case by 3.7 percentage points. In the same period the 6-month T-bill rate fell 4.5 percentage points. These figures come from the Riksbank's survey of the average level of bank deposit and lending rates on 31 December 1996.

Bank deposit rates averaged 2.5 per cent and lending rates 7.4 per cent.

The average lending rate for all loans from house mortgage institutes was 9.4 per cent, a fall of 1.2 percentage points from 31 March 1996 (when the rates of these intermediaries were surveyed for the first time).

For all loans from banks and house mortgage institutions the average weighted rate at end December was 8.8 per cent. Since March 1996 the average interest cost for the non-bank public had fallen by 1.7 percentage points. The loan stock in question constitutes about 85 per cent of the credit institutions' total stock of domestic currency loans to the non-bank public.

Copies of the survey report are obtainable at the main entrance of the Riksbank at No. 11 Brunkebergstorg. They can also be ordered from the Information Centre, fax: Int. +46 8 787 05 26; phone: Int. +46 8 787 01 00.

For further information, please call:
Enar Olofsson, phone: Int. +46 8 787 01 38
Kristina Löfstrand, phone: Int. +46 8 787 05 62.