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# Euro area corporate borrowing costs rise 13 basis points to 3.90% as banks pay more for term deposits
- URL: https://www.theglobalbanker.com/euro-area-corporate-borrowing-costs-rise-13-basis-points-to-3-90-as-banks-pay-more-for-term-deposits/
- Published: 2026-11-02T21:05:03.000Z
- Updated: 2026-11-02T21:05:03.000Z
- Description: The ECB's cost-of-borrowing indicator for new loans to euro area companies rose 13 basis points to 3.90% in September, while rates on companies' new term deposits climbed 23 basis points to 2.48%.
- Author: TGB Editorial Team
- Tags: Banking News, Europe, #newsroom

Euro area banks charged companies more for new loans in September 2026, according to bank interest rate statistics published by the European Central Bank. The ECB's composite cost-of-borrowing indicator for new loans to corporations rose by 13 basis points to 3.90%, while the equivalent indicator for household mortgages was broadly unchanged at 3.62%.

Rates on new term deposits rose by more. The composite rate on new deposits with an agreed maturity from corporations increased by 23 basis points to 2.48%, and the rate for households rose by 19 basis points to 2.37%. Overnight deposits from households were broadly unchanged at 0.30%, while companies' overnight balances earned 0.68%, up 7 basis points.

## LARGE LOANS WITH SHORT FIXATION

Rates on large corporate loans with short rate fixation rose by 17 and 18 basis points. The rate on new loans of over €1 million with a floating rate and with an initial rate fixation of up to three months rose by 17 basis points to 3.51%, and loans of the same size fixed for between three months and a year rose by 18 basis points to 3.96%, the ECB said.

Rates on smaller loans and on long-fixed large loans rose less. The average rate on floating-rate loans of up to €250,000 rose by 8 basis points to 4.01%, and the rate on large loans fixed for more than ten years increased by 7 basis points to 3.81%.

Households fared differently. The rate on new consumer loans fell by 12 basis points to 7.82%, which the ECB attributed to both interest rate and weight effects, while mortgages fixed for more than ten years stayed almost constant at 3.44%.

## A CHANGE FROM AUGUST

In August 2026 the corporate cost-of-borrowing indicator was broadly unchanged at 3.77% and the composite rate on new term deposits from corporations was broadly unchanged at 2.25%, according to the August figures. The mortgage indicator rose by 6 basis points to 3.60% that month.

The ECB's own rates have not moved since September. At its meeting on 29 October the ECB kept the deposit rate at 2.50%, the main refinancing rate at 2.65% and the marginal lending rate at 2.90%, maintaining the levels introduced in September, according to press reports.

## POLICYMAKERS ARGUE FOR MORE

Several policymakers have since made the case for adding to the ECB's two rate hikes sooner rather than later, citing high energy costs, Reuters reported. Slovak central bank chief Peter Kazimir said on Monday that the ECB will have to raise rates again to prevent high inflation from becoming entrenched. "Last week's pause was not a finish line," he said. "We should act before high inflation starts to feel normal."

## THE TGB VIEW

Companies' new term deposits now earn 2.48%, leaving almost no gap to the 2.50% the ECB pays on its deposit rate, while households' overnight deposits still earn 0.30%. In September 2026 the corporate term deposit rate rose 23 basis points against 13 basis points for the corporate cost-of-borrowing indicator, after both were broadly unchanged in August 2026\. The next date to watch is the ECB's meeting on 17 December, the first since the 29 October decision to keep the deposit rate at 2.50%.

*Related: [European central banks propose flexible MiCA liquidity rules for stablecoins](https://www.theglobalbanker.com/european-central-banks-proposed-flexible-mica-liquidity-rules-for-stablecoins/)*