Bank loans in the European Union - statistics & facts

Bank lending constitutes an important industry in the European Union (EU) given that in most of its member states the total value of loans represented over 70 percent of their gross domestic product (GDP) in 2020. In fact, the value of loans granted by banks in some of those countries, including Denmark, Sweden, France, Spain, and the Netherlands, was greater than the overall size of their economy. Furthermore, loans and advances accounted for over 60 percent of bank assets in the EU in 2021, with mortgages and business loans being the segments with the highest market share.

The role of bank loans in the economy of the EU

The EU has a large and diverse economy whose GDP reached over 14.4 trillion euros in 2021, an amount that was generated across its 27 member states. The population size and the high living standards of the EU turns it into a key consumer market. Bank loans support that part of the economy by helping consumers afford big purchases, including homes, cars, and other products that they could not pay for without relying on credit. It is safe to say that another reason for the EU's prowess is the diverse composition of its economy, as well as being home to companies of different sizes, including global players working in a wide array of sectors such as manufacturing, construction, finance, or the service industry. Bank lending plays an important role there too: loans to small and medium enterprises (SMEs) in Europe in 2021 were worth 2.35 billion euros, not far from the value of loans granted to the rest of non-financial corporations at 3.35 billion euros. Financing small businesses is an important tool for promoting entrepreneurship, which helps maintain a prosperous and dynamic corporate sector.

How do interest rates vary across the Eurozone?

In 2022, Greece, Malta, and Cyprus, and to some extent other countries like Latvia, had some of the highest interest rates in the Eurozone. In contrast, the Netherlands had relatively low interest rates, which on average were down to 0.78 percent for its short-term loans that year. However, big variations can be observed depending on the type of loan considered. For example, long-term loans in the Netherlands were above the Eurozone average. Meanwhile, consumer loans usually have higher interest rates than mortgages or business loans. The maturity of the loans, and whether they have a floating rate or collateral guarantees are also key factors in determining the cost of borrowing.
This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text.
Published by Statista Research Department, Aug 9, 2022

Key insights

Value of households loans in the EU
5.71tr EUR
Interest rates on loans to non-financial corporations in the Eurozone
3.41%
Loans as share of total bank assets in Europe
61.8%
Get more insights

Editor’s Picks Current statistics on this topic

Mortgage interest rate in selected European countries as of 4th quarter of 2021 and 4th quarter 2022

Mortgages & Financing

Mortgage interest rate in Europe Q4 2021-Q4 2022, by country

Value of loans and advances to households in the European Economic Area as of December 2022, by country and type (in billion euros)

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Loans and advances to households in Europe 2022, by country and type

Value of consumer loans per capita in the euro area in 2022, by selected countries (in euros)

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Consumer loans per capita in the euro area 2022, by selected countries

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