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Net interest income of households and firms

Author

Listed:
  • de Bondt, Gabe
  • Krustev, Georgi
  • Slavík, Michal
  • Tujula, Mika

Abstract

This box analyses recent developments in the net interest income of households and firms in the euro area as a whole and in the largest euro area countries, against the backdrop of rising interest rates. Net interest income is a direct channel through which the ECB transmits policy rate changes to savers and borrowers. Over the last decade net interest income has been negative for households and firms at the aggregate sectoral level. Interest-bearing assets, which affect the interest received by households and firms, and liabilities, which affect interest paid, are important drivers of developments in net interest income. Individual countries demonstrate striking differences in net interest income and interest-bearing assets and liabilities, largely due to specific structural factors. JEL Classification: E01, E43, E52

Suggested Citation

  • de Bondt, Gabe & Krustev, Georgi & Slavík, Michal & Tujula, Mika, 2024. "Net interest income of households and firms," Economic Bulletin Boxes, European Central Bank, vol. 8.
    • Handle: RePEc:ecb:ecbbox:2024:0008:7
    Note: 337418
    as

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    File URL: https://www.ecb.europa.eu//press/economic-bulletin/focus/2024/html/ecb.ebbox202308_07~61bd1e11a8.en.html
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    More about this item

    Keywords

    firms; households; Net interest income; rising interest rates;
    All these keywords.

    JEL classification:

    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

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