Average interest rate on corporate loan stock fell to below 2%
Over the past few years the average interest rate on the stock of loans to non-financial corporations has remained at a clearly lower level in Finland than in the euro area on average. In November the average interest rate on the stock was 1.99% in Finland, compared to 3.39% in the euro area in October. While the interest rate on the corporate loan stock has been low, the corporate loan stock has grown faster in Finland in the past two years than in the euro area on average. In November the annual growth rate of the corporate loan stock was 5.4% in Finland, compared to the euro-area average of -1.8%. In 2012 the annual growth rate of the corporate loan stock has been faster in Finland than in any other euro area country.
Loans
Households' new drawdowns of housing loans amounted to EUR 1.6 bn in November 2012, which is slightly less than in November 2011. The average interest rate on new housing-loan drawdowns was 1.82% in November, up by 0.01 percentage point on October. At end-November the stock of euro-denominated housing loans was EUR 86 bn and the average interest rate on the stock was 1.68%. The annual growth rate of the housing loan stock moderated further in November, to 5.8%. At end-November household credit comprised EUR 13 bn in consumer credit and EUR 15 bn in other loans.
New drawdowns of loans to non-financial corporations (excl. overdrafts and credit card credit) amounted to EUR 2.1 bn in November, which is about EUR 0.2 bn more than a year earlier. The average interest rate on new corporate-loan drawdowns fell by 0.16 percentage point from October, to 1.97%. At end-November the stock of euro-denominated loans to non-financial corporations was EUR 64 bn, of which loans to housing corporations accounted for EUR 16 bn. The annual growth rate of the corporate loan stock remained unchanged, at 5.4% in November.
Deposits
At end-November the stock of household deposits amounted to EUR 82 bn. The average interest rate on the stock was 0.77%. Overnight deposits accounted for EUR 46 bn and deposits with agreed maturity for EUR 21 bn of the total deposit stock. In November households concluded EUR 1.4 bn of new agreements on deposits with agreed maturity. The average interest rate on these fell to 1.16%, from 1.24% in October.
Notes:
MFIs comprise all monetary financial institutions operating in Finland.
Loans and deposits comprise all euro-denominated loans and deposits vis-à-vis the euro area as a whole, with countries other than Finland accounting for a very small share of total volumes.
Key figures of Finnish MFIs' loans and deposits, preliminary data
| September, EUR million |
October, EUR million |
EUR million |
November, 12-month change1, % |
Average interest rate, % | |
| Loans to households2, stock | 113.909 | 114.327 | 114.701 | 5.1 | 2.05 |
| - of which housing loans | 85.466 | 85.775 | 86.140 | 5.8 | 1.68 |
| Loans to non-financial corporations2, stock | 63.405 | 63.256 | 63.528 | 5.4 | 1.99 |
| Deposits by households2, stock | 83.125 | 81.953 | 81.472 | 1,0 |
0.77 |
| Households' new drawdowns of housing loans | 1.579 | 1.669 | 1.590 | – | 1.82 |
1 Rate of change has been calculated from monthly differences in levels adjusted for classification and other revaluation changes.
2 Households also include non-profit institutions serving households; non-financial corporations also include housing corporations.
- Euro-denominated deposits and loans of euro area residents: stock, 12 month rate of change and average interest rate
- Euro-denominated loans and deposits of Finnish households
- New business on loans and new drawdowns of household loans
- Finnish contribution to the euro area monetary aggregates and their main counterparts
- Analytical accounts of the banking sector (MFIs) in Finland
For further information, please contact:
Essi Tamminen, tel. +358 10 831 2395, email: essi.tamminen(at)bof.fi
Jyrki Lehtinen, tel. +358 10 831 2376, email: jyrki.lehtinen(at)bof.fi
The next news release will be published at 1 pm on 31 January 2013.
Related statistical data and graphs are also available on the Bank of Finland website:
http://www.suomenpankki.fi/link/2331b6266da3492f832ec75e0f654bd9.aspx?epslanguage=en.
You can also subscribe to the monthly Loans, deposits and interest rates –newsletter to your email from the Bank of Finland website