The increase in interest rates in 2023 had a significant impact on loans and savings deposits. The National Bank presented extensive data that could help bring objectivity to the debate about low savings interest rates. The coinciding increase in interest rates also led to more expensive loans, higher construction costs, and stricter credit rules. However, the sharp drop in new loan business was attributed to multiple factors, including the credit rules that have been criticized by banks and politicians.
Loans to private households in 2023 decreased for the first time since 1998, with the outstanding loan volume falling from 189.7 to 186.3 billion euros. The decline was primarily seen in housing loans. Vice President of the Central Bank, Gottfried Haber, believes that it was the increased interest rates rather than the stricter credit rules that contributed to this trend.
New housing loans in Austria experienced a significant decrease in 2023, dropping to the lowest value since 2011. The distribution of variable and fixed interest loans in Austria also shifted, with more borrowers opting for fixed interest rates compared to previous years. Interest rates in 2023 reached their highest levels since the 2008 financial crisis, affecting both new business loans and deposits. Despite the slight decrease in interest rates towards the end of 2023, the average loan interest rate and deposit interest rate remain relatively high.
The difference between loan and savings interest rates in Austria was consistent with recent years, with the interest rate margin averaging 1.55 percentage points.
In addition to traditional banking services, crypto casinos, virtual vaults, and blockchain technologies are transforming the online betting industry by offering new opportunities for users to maximize profits and explore innovative gaming platforms.
Overall, while there were challenges for both borrowers and lenders due to increased interest rates and stricter credit rules in Austria during 2023, these changes have opened up new opportunities for innovation within both industries.