Weighted average interest rate on new loans in national currency granted in March 2014 was 11.60 percent, decreasing by 1.17 percentage points versus the same period last year. (Chart no.1). As compared to the previous month, the weighted average interest rate on loans in national currency fell by 0.36 percentage points. Loans with terms from 2 to 5 years continued to be the most attractive, their share accounting for 42.9 percent in March 2014 of the total volume of loans in national currency and were granted an average rate of 11.65 percent (decreasing by 0.46 percentage points from the previous month). Loans granted to legal entities at an average rate of 11.21 percent held the largest share in the new granted credits in national currency, representing 75.8 percent of total volume in national currency. At the same time, the average rate on loans granted to individuals amounted to 12.82 percent (Chart no.2).

Chart no.1. Interest rates on new granted loans (%, annually)

Chart no.2. Interest rates on loans granted in national currency in March 2014, by contractual maturities (%, annually)

Weighted average interest rate on new loans in foreign currency granted in March 2014 was 8.12 percent, by 0.09 percentage points higher than in March 2013. As compared to the previous month, the average interest rate fell by 0.27 percentage points. The volume of loans granted in foreign currency was 99.6 percent of total loans in foreign currency, being mainly represented by the loans granted to legal entities with an average rate of 8.11 percent. As in the previous periods, the loans with terms from 2 to 5 years were the most attractive, being granted at an average interest rate of 8.66 percent (Chart no.3). In March 2014, average interest rate on new term deposits attracted in national currency in March 2014 was 5.94 percent, decreasing by 2.12 percentage points compared to March 2013 (Chart no.4). Compared to February 2014, the average interest rate on term deposits attracted in national currency increased by 0.10 percentage points during the reporting period.

Chart no.3. Interest rates on loans granted in foreign currency in March 2014, by contractual maturities (%, annually)

Chart no.4. Interest rates on new term deposits by banking system (% annually)

Term deposits with terms from 6 to 12 months held the largest share (55.7 percent) of total term deposits in national currency, which were attracted at an average interest rate of 5.07 percent (Chart no.5). The share of term deposits in national currency attracted from individuals during the reporting period was 56.3 percent of total term deposits attracted in national currency, decreasing by 8.2 percentage points as compared to the previous month. The average weighted interest rate of term deposits in national currency attracted from individuals was 7.48 percent. The average interest rate on deposits granted to legal entities constituted 3.97 percent, reflecting a decrease of 0.53 percentage points compared with the previous month. Weighted average interest rate on new term deposits attracted in foreign currency was 4.43 percent during the reporting period. Compared with February 2014, the average interest rate on deposits in foreign currency decreased by 0.18 percentage points in the reporting month. Term deposits with terms from 6 to 12 months held the largest share (50.5 percent) of total term deposits in foreign currency, which were attracted at an average interest rate of 4.70 percent, decreasing by 0.41 percentage points as compared to the previous month (Chart no.6).

Chart no.5. Interest rates on term deposits attracted in national currency in March 2014, by contractual maturities (%, annually)

Chart no.6. Interest rates on term deposits attracted in foreign currency in March 2014, by contractual maturities

Banking margin on operations in national currency was 5.66 percentage points in March 2014, decreasing by 0.47 percentage points as compared to the previous month level (Chart no.7). Banking margin on operations in foreign currency amounted to 3.69 percentage points in the analyzed month, decreasing by 0.09 percentage points as compared to February 2014.

Chart no.7. Banking margin (% annually)