Credit institutions’ credit losses small
Credit institutions operating in Finland incurred EUR 363 million in impairments and credit losses1 in the past 12 months on loans granted to the public. This corresponds to 0.14% of the total stock of loans. In early 2018, a new model was introduced for the recognition of impairment losses (in Finnish only), but, since then, their amount relative to the loan stock has changed only slightly.
Impairment losses on corporate loans in the past 12 months were slightly higher than on household loans (0.19% of the corporate loan stock). Impairment losses on corporate loans have, however, decreased on average in the past five years or so. Impairment losses incurred on household credit during the past 12 months, in turn, corresponded to 0.15% of the loan stock in June 2019. Notwithstanding the slight increase witnessed in the first half of 2019, impairment losses on household loans have remained virtually unchanged in recent years.
Of the stock of household credit, impairment losses have especially increased in the past 12 months on consumer credit. Impairment losses on consumer credit totalled EUR 141 million (0.87% of the loan stock) in the past 12 months, mostly comprising unsecured consumer credit and overdrafts and credit card credit. Still in June 2018, impairment losses for the past 12 months amounted to 0.60% of the loan stock. The 12-month total of impairment losses on secured consumer credit and housing loans has not exceeded 0.05% of the loan stock in this decade.
Loans
Households' new drawdowns of housing loans in June 2019 amounted to EUR 1.8 bn, which is slightly more than in the corresponding period a year earlier. At the end of June 2019, the stock of euro-denominated housing loans totalled EUR 98.9 bn and the annual growth rate of the stock was 2.0%. Household credit at end-June comprised EUR 16.1 bn in consumer credit and EUR 17.4 bn in other loans.
New drawdowns of loans to non-financial corporations (excl. overdrafts and credit card credit) amounted in June to EUR 2.1 bn. The average interest rate on new corporate-loan drawdowns declined from May, to 2.18%. At the end of June, the stock of euro-denominated loans to non-financial corporations was EUR 88.0 bn, of which loans to housing corporations accounted for EUR 33.3 bn.
Deposits
The stock of household deposits at end-June totalled EUR 93.9 bn and the average interest rate on the deposits was 0.11%. Overnight deposits accounted for EUR 81.1 bn and deposits with agreed maturity for EUR 4.8 bn of the deposit stock. In June, households concluded EUR 0.2 bn of new agreements on deposits with agreed maturity, at an average interest rate of 0.34%.
1Hereinafter, only the term “impairment losses” is used, to cover both credit losses and other impairments.
Key figures of Finnish MFIs' loans and deposits, preliminary data
| April, EUR million | May, EUR million | June, EUR million | June, 12-month change1, % | Average interest rate, % | |
| Loans to households2, stock | 131,334 | 131,870 | 132,436 | 2,4 | 1,48 |
| - of which housing loans | 98,138 | 98,479 | 98,921 | 2,0 | 0,96 |
| Loans to non-financial corporations2, stock | 86,986 | 87,365 | 88,046 | 6,5 | 1,36 |
| Deposits by households2, stock | 96,228 | 96,704 | 98,017 | 7,6 | 0,11 |
| Households' new drawdowns of housing loans | 1,622 | 1,899 | 1,784 | 0,76 |
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:
Olli Tuomikoski, tel. +358 9 183 2146, email: olli.tuomikoski(at)bof.fi,
Johanna Honkanen, tel. +358 9 183 2992, email: johanna.honkanen(at)bof.fi.
The next news release will be published at 1 pm on 30 August 2019.
Related statistical data and ‑graphs are also available on the Bank of Finland website https://www.suomenpankki.fi/en/Statistics/mfi-balance-sheet/.