Pick-up in consumer credit growth
In November 2017, the annual growth rate of the stock of consumer credit granted to households by credit institutions operating in Finland was 5.7%. The growth rate has picked up notably from a year earlier. The stock of unsecured1 consumer credit grew at the fastest pace in November (10.9%). The growth rate of the stock of secured consumer credit has accelerated during the year, to 4.7% in November. Overdrafts and credit card credit grew at a more moderate pace (2%) in November.
The stock of household consumer credit granted by credit institutions totalled EUR 15.2 bn in November 2017. Unsecured2 consumer credit accounted for EUR 4.6 bn, secured consumer credit for EUR 5.9 bn and overdrafts and credit card credit for EUR 4.7 bn of the credit stock.
The stock of consumer credit granted by credit institutions operating in Finland accounts for about 80% of Finnish households' consumer credit. A small proportion of consumer credit is taken out from other households, in the form of peer-to-peer lending. In addition, consumer credit is granted by other financial institutions and foreign credit institutions engaged in cross-border lending, and the lending volumes of these institutions have also increased at a brisk pace. The aggregate stock of household consumer credit is already estimated at close to EUR 19 bn.
Loans
In November 2017, households drew down new housing loans to the value of EUR 1.6 bn. The average interest rate on new housing-loan drawdowns was 0.97% and the imputed margin was 0.95%. At the end of November 2017, the stock of euro-denominated housing loans amounted to EUR 96.0 bn and the annual growth rate of the stock was 2.3%. Household credit at the end of November comprised EUR 15.3 bn in consumer credit and EUR 16.7 bn in other loans.
New drawdowns of loans to non-financial corporations (excl. overdrafts and credit card credit) amounted to EUR 2.0 bn in November. The average interest rate on new corporate-loan drawdowns rose from October, to 1.89%. The stock of euro-denominated loans to non-financial corporations at the end of November was EUR 78.7 bn, of which loans to housing corporations accounted for EUR 28.5 bn.
Deposits
At the end of November 2017, the stock of household deposits totalled EUR 85.9 bn, and the average interest rate on the deposits was 0.15%. Overnight deposits accounted for EUR 64.2 bn and deposits with agreed maturity for EUR 6.9 bn of the deposit stock. In November, households concluded EUR 0.5 bn of new agreements on deposits with agreed maturity, at an average interest rate of 0.36%.
1Secured and unsecured consumer credit does not include overdrafts and credit card credit.
2Unsecured consumer credit also includes loans not fully covered by collateral.
Key figures of Finnish MFIs' loans and deposits, preliminary data
| September, EUR million | October, EUR million | November, EUR million | November, 12-month change1, % | Average interest rate, % | |
| Loans to households2, stock | 127,636 | 127,850 | 128,002 | 2,7 | 1,53 |
| - of which housing loans | 95,672 | 95,819 | 96,025 | 2,3 | 1,02 |
| Loans to non-financial corporations2, stock | 78,974 | 79,261 | 78,740 | 4,7 | 1,41 |
| Deposits by households2, stock | 87,455 | 86,437 | 85,870 | 0,6 | 0,15 |
| Households' new drawdowns of housing loans | 1,590 | 1,638 | 1,584 | 0,97 |
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
- Imputed interest rate margins on loans from MFIs
For further information, please contact
Markus Aaltonen, tel. +358 9 183 2395, email: markus.aaltonen(at)bof.fi
Olli Tuomikoski, tel. +358 9 183 2146, email: olli.tuomikoski(at)bof.fi
The next news release will be published at 1 pm on 31 January 2018.
Related statistical data and graphs are also available on the Bank of Finland website: https://www.suomenpankki.fi/en/Statistics/mfi-balance-sheet/.