Contraction of households’ financial assets came to a halt in January–March 2009

In January–March 2009, households’ financial assets¹ diminished by just EUR 0.7 billion. At EUR 139.6 billion, they were EUR 13.0 or 85% lower in March 2009 than a year earlier. Although the annual rate of growth of households’ loan-based liabilities slowed further, the stock of loans (EUR 94.0 billion) was 6.4% higher than a year earlier. Owing to a slight decline in financial assets and growth in loans, the decline in households’ net financial assets, which had started in summer 2007, continued. At EUR 45.6 billion, net financial assets were EUR 18.7 or 29% lower in March 2009 than a year earlier.

Over the course of the financial market crisis, households have transferred a substantial amount of funds from mutual fund units to deposits, but this trend reversed in the first quarter of 2009 as a result of households subscribing to mutual fund units in the amount of EUR 0.5 billion and holding deposits at the previous quarter’s level.

In March 2009, the stock of corporate loans (excluding loans between Finnish companies) totalled EUR 95.3 billion, up EUR 10.2 billion on March 2008. At EUR 23.3 billion, the amount of commercial paper outstanding was about the same as the year before. In aggregate terms, debt finance grew at an annual rate of 9.3%. Non-financial corporations’ listed share-based liabilities fell rapidly with the fall in share prices: in March 2009 they were EUR 83.7 billion, ie 55% lower than in March 2008. Share-based liabilities shrank partly because share repurchases were EUR 1.4 billion higher than share issues between April 2008 and April 2009.

The above information has been excerpted from the quarterly financial accounts statistics compiled by the Bank of Finland. These provide an overview of the stocks of financial assets and liabilities of the different sectors of the national economy and of the related transaction flows.

¹⁾ Data excludes unquoted shares and other equity, and other accounts receivable. Shares in housing corporations are also excluded from financial assets.

Further information:
Risto Suomela, tel. +358 10 831 2414, email:forname.lastname@bof.fi