Bank of England: UK Corporates are losing £bns by not optimising their bank interest spread

Recently published data (October Statistics) from the Bank of England shows the increasing & spread (net interest margin) cost for corporates.

Graph 1:BoE Effective Interest Rates PNFCs on Stock Outstanding of Deposits Loans

Effective interest rates for: PNFC’s on stock outstanding of deposits and loans

Outstanding facilities

1. The effective rate for sight deposits increased by 0.13% from 0.57% to 0.70% in October
2. The effective rate for time deposits increased by 0.44% from 1.5% to 1.94% in October
3. The effective rate for loans increased by 0.25% from 4.08% to 4.33% in October

Graph 2:Effective Interest Rates PNFCs on New Deposits Loans

Effective interest rates for: PNFCs on new deposits and loans

New business
1. The effective rate for time deposits increased by 0.31% from 2.05% to 2.36% in October
2. The effective rate for loans increased by 0.22% from 3.59% to 3.81% in October

Table B: Effective interest rates paid/received on PNFC balances by UK MFIs (excluding central bank) Per cent – Not seasonally adjusted

BoE Effective Interest Rates Paid Received on PNFC Balances By UK MFIs

Source: Bank of England, Published on 31 October 2022, https://www.bankofengland.co.uk/statistics/effective-interest-rates/2022/september-2022

Source: Bank of England, Published on 31 October 2022, https://www.bankofengland.co.uk/statistics/visual-summaries/effective-interest-rates

Many corporates now use Bankhawk’s benchmarking service to optimise their bank interest rate spread. Book an appointment to get more information 

Click here to read more interesting blogs by Bankhawk