Chart 12 shows the time series of the average euro area lending rate, which incorporates the factors that banks consider when pricing a loan: the base rate (a term overnight interest swap rate), funding costs, credit risk and the cost of capital.
It is apparent that, despite an increase in credit risk, the supportive conditions of the ECB funding have contributed to keeping the lending rate around the historically low levels it had reached before the pandemic crisis. Chart 12 Lending rate to non-financial corporations and the intermediation wedge (percentages per annum)  Sources: ECB (MIR statistics) and Bloomberg.