​Source: Thomson Reuters Datastream, ECB and own calculations.
13  ​Implications for banks  Interest rate margins are being squeezed Per cent  Per cent 4  6  Term spread  5  3  4 Lending margin 3 2  1  1 0  2  0 Deposit margin  -1 -2  -1 -2  03 04 05 06 07 08 09 10 11 12 13 14 15 16 17  97  99  01  03  05  07  09  11  13  15  17  ​Note: The lending margin is calculated as the difference between the average lending rate and the T/N money market rate.