Bank deposit rate falls by 52bps in May

June 18, 2026 (MLN): The return on bank deposits has decreased by 52 basis points to 4.33% in May 2026 compared to the deposit rate of 4.85% last month, according to the latest official data.

On a yearly basis, the weighted average rate paid for deposits by the banking sector has decreased by 890bps compared to the return of 13.23% last year.

Meanwhile, the lending rate for all scheduled banks stood at 12.18%, up 43bps compared to April. While it fell 6bps compared to the same month of last year.

As a result, the banking spread, the difference between lending and deposit rates, widened to 785bps in May from 690bps in the previous month, indicating continued pressure on depositors despite improving margins for banks.

After adjusting for inflation, the real deposit rate remained in negative territory at minus 2.06% in May, deteriorating from minus 0.86% in April and minus 1.72% recorded a year earlier.

In contrast, the real lending rate eased to 5.79% in May from 6.04% in the preceding month and 7.03% in May 2025, reflecting a gradual moderation in borrowing costs in real terms.

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