Moderate developments in household consumer credit

The stock of household consumer credit has remained virtually unchanged for the last six months. Outstanding consumer credit at the end of February 2016 totalled EUR 14.1 bn, compared to EUR 14.0 bn six months earlier. Although changes in outstanding consumer credit in Finland have recently been small, the growth of the stock has been positive and, in annual terms, faster than in the euro area on average.

In February 2016, the interest rate on new drawdowns of consumer credit (excl. overdrafts and credit card credit) was 4.19%. Interest rates on consumer credit have developed steadily in recent years, and the decline in market interest rates has not passed through to these types of credit in the same way as e.g. to housing loans.

Consumer credit granted by banks accounts for approximately 90% of all household consumer credit. Other financial institutions operating without credit-institution authorisation also grant consumer credit to households. According to Statistics Finland, the stock of credit granted to households by other financial institutions (excl. insurance companies) at the end of December 2015 was EUR 2 bn, of which consumer credit accounted for 95%.

Loans

In February 2016, households’ new drawdowns of housing loans amounted to EUR 1.3 bn, which is slightly more than a year earlier in February. The average interest rate on new housing-loan drawdowns was 1.24% and the imputed margin 1.23%. The stock of euro-denominated housing loans totalled EUR 92 bn at the end of February, and the annual growth rate of the housing loan stock was 2.5%. Households had EUR 16 bn worth of other loans at the end of February.

New drawdowns of loans to non-financial corporations (excl. overdrafts and credit card credit) amounted to EUR 1.9 bn in February 2016. The average interest rate on new corporate-loan drawdowns rose from January, to 1.90%. At the end of February, the stock of euro-denominated loans to non-financial corporations was EUR 73.5 bn, of which loans to housing corporations accounted for EUR 23.6 bn.

Deposits

At the end of February, the stock of household deposits totalled EUR 81.4 bn, and the average interest rate on the deposits was 0.27%. Overnight deposits accounted for EUR 56 bn and deposits with agreed maturity for EUR 10.7 bn of the total deposit stock. In February, households concluded EUR 0.6 bn of new agreements on deposits with agreed maturity, at an average interest rate of 0.72%.

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.