Annual growth of housing loan stock has moderated further in Finland
The annual growth rate of the stock of housing loans was just 3.6% in July. The annual growth rate has slowed uninterruptedly for over a year. A year earlier in July 2012 it was still 6.3%. In the euro area on average, the stock of housing loans continues to grow at a slower pace than in Finland, and in June and July the annual growth rate fell to below 1%. At the beginning of 2013, the annual growth rate of the euro area housing loan stock was 1.4%.
The stock of loans to non-financial corporations grows faster in Finland than in the euro area on average. Including housing corporations, the annual growth rate of the corporate loan stock was 3% in July in Finland. Housing corporations account for more than a fourth of the corporate loan stock in Finland, while in other euro area countries housing corporations are not particularly significant. Excluding housing corporations, the stock of corporate loans declined by 0.1% on the previous year in Finland, at the same pace as for example in Germany and France. In the euro area on average, the annual growth rate of the corporate loan stock contracted on the previous year, to -3.7%.
Loans
In July 2013, households’ new drawdowns of housing loans amounted to EUR 1.3 bn, which is EUR 0.3 bn less than a year earlier in July. The average interest rate on new housing-loan drawdowns was 2.07%, slightly up on June 2013. At end-July the stock of
euro-denominated housing loans was EUR 87.5 bn and the average interest rate on the stock was 1.45%. The annual growth rate of the housing loan stock moderated further, to 3.6%. At end-July household credit comprised EUR 13 bn in consumer credit and EUR 15.2 bn in other loans.
New drawdowns of loans to non-financial corporations (excl. overdrafts and credit card credit) amounted to EUR 2.2 bn in July, which is about EUR 0.3 bn more than in July 2012. The average interest rate on new corporate-loan drawdowns rose by 0.55 percentage point from June, to 2.45%. At end-July the stock of euro-denominated loans to non-financial corporations was EUR 64.9 bn, of which loans to housing corporations accounted for EUR 17 bn. The annual growth rate of the euro-denominated housing loan stock was unchanged in July, at 4.3%.
Deposits
At end-July the stock of household deposits amounted to EUR 81.9 bn. The average interest rate on the stock was 0.50%. Overnight deposits accounted for EUR 50 bn and deposits with agreed maturity for EUR 17.4 bn of the total deposit stock. In July households concluded EUR 1.3 bn of new agreements on deposits with agreed maturity. The average interest rate on these was 1.07% in July.
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
| May, EUR million |
June, EUR million |
July, EUR million |
July, 12-month change1, % |
Average interest rate, % | |
| Loans to households2, stock | 115,365 | 115,527 | 115,665 | 3.1 | 1.86 |
| - of which housing loans | 87,093 | 87,443 | 87,522 | 3.6 | 1.45 |
| Loans to non-financial corporations2, stock | 64,925 | 64,911 | 64,868 | 4.3 | 1.93 |
| Deposits by households2, stock | 82,099 | 82,943 | 81,925 | -1.2 | 0.50 |
| Households' new drawdowns of housing loans | 1,484 | 1,383 | 1,296 | – | 2.07 |
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,
Jaakko Suni, tel. +358 10 831 2454, email: jaakko.suni(at)bof.fi
The next news release will be published at 1 pm on 30 September 2013.
Related statistical data and graphs are also available on the Bank of Finland website: http://www.suomenpankki.fi/link/2331b6266da3492f832ec75e0f654bd9.aspx?epslanguage=fi.