are well below the dollar average for both households and businesses. Unicredit’s forecasts roughly correspond to the average of the survey. The average interest rate on a company’s loans is calculated as follows: Why are the interest rates for the self-employed higher on average? Nevertheless, we try to offer low interest rates to all of our borrowers.
Why small businesses have to pay high lending rates
The following contribution shows that there is a positive correlation between company size and interest. On average, the cost of credit for small businesses is higher on average than for larger businesses, as small businesses face additional lending rates due to information weaknesses, relatively higher operational costs, and the market power of credit institutions.
Small and medium-sized enterprises (SMEs) in particular are heavily dependent on a well-functioning capital market, since they have only very limited viable alternative loans to bank loans.
Therefore, the average interest rates of a higher volume loan are lower than for loans with a small loan volume.
However, the authors of this study did not discuss the reasons for this poor correlation between company size and interest.
Companies participate in falling interest rates
The large loans in the new business declined by 0.55 percentage points in the first business quarter compared to the previous business quarter, while the business volume decreased by 0.32 percentage points from up to EUR 1 million.
In view of the unchanged key interest rate of the Capital Lender and falling interbank interest rates, new loan interest rates concluded with Austrian companies continued to decline in the first quarter of 2012.
Households in Austria had to accept a significant drop in interest rates for new deposit rates in the first quarter of 2012, with all term categories below the comparative values for the euro area. The three-year tenders carried out by the Capital Lender in December 2011 and February 2012, which provided European banks with liquidity of $ 1 billion, also had an impact on money market interest rates in the first quarter.
The average money market interest rates were partially passed on to their customers by the credit institutions and led to falling interest rates for deposits and withdrawals. In lending, the companies benefited above all from a significantly lower interest rate for large loans (over $ 1 million).
The large loans in the new business declined by 0.55 percentage points in the first business quarter compared to the previous business quarter, while the business volume decreased by 0.32 percentage points from up to $1 million. The average interest rates in both areas were 2.70% (up to one million dollars) and 2.16% (over one million dollars), which is below the average for the euro zone of 4.24% and 2.57, respectively %.
At the same time, the creditworthiness growth of domestic groups in the first quarter also outperformed the development in the euro area. The annual growth rate of the loan volume of Austrian companies rose to 2.7%, while that of the euro area continued to move towards zero. Households were able to benefit from better conditions (-0.24 percentage points), particularly in the case of new home loans, while consumer loans rose by 0.28 percentage points, contrary to the general trend in the industry.
In Austria, private individuals also saw stronger growth in loans (1.4%) than in the euro area (0.6%). In the case of investments between one and two years in particular, the average interest rate of 2.08 percentage points was 0.47 percentage points far below that of the previous quarter.
However, the average for the euro area was mainly pushed up by some southern European countries. Real interest rates showed that they were still positive for longer-term investments (over 2 years) in the first quarter of 2010.