Bank of England: UK Corporates are losing £bns by not optimising their bank spread
Recently published data (October Statistics) from the Bank of England shows the increasing & spread (net interest margin) cost for corporates.
Graph 1:
Effective interest rates for: PNFCs 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 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
Many corporates now use Bankhawk’s benchmarking service to optimise their bank interest rate spread
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
