The average interest rate on the stock of housing loans fell by 0.3 percentage point in Finland in the early part of the year, to 2.18% in May. The recent decline in short-term market rates is rapidly passed on to the average interest rate on the housing loan stock, since the bulk of Finnish housing loans is linked to interest rates of one year or less, ie mainly to Euribor rates and banks' own reference rates. The average interest rate has declined more in Finland than in the euro area on average.
Households' new drawdowns of housing loans amounted to EUR 2.0 bn in May 2012, which is as much as a year earlier. The average interest rate on new housing-loan drawdowns fell by 0.07 percentage point from April, to 2.03%. At end-May the stock of euro-denominated housing loans was EUR 84 bn and the average interest rate on the stock was 2.18%. The annual growth rate of the housing loan stock was almost unchanged in May, at 6.4%. At end-May household credit comprised EUR 13 bn in consumer credit and EUR 15 bn in other loans.New drawdowns of loans to non-financial corporations amounted to EUR 2.0 bn in May, which is EUR 0.2 bn less than a year earlier. The average interest rate on new corporate-loan drawdowns fell by 0.20 percentage point from April, to 2.18%. At end-May the stock of euro-denominated loans to non-financial corporations was EUR 63 bn, of which loans to housing corporations accounted for EUR 15 bn. The annual growth rate of the corporate loan stock declined to 7.6%, from 8.1% in April.
At end-May the stock of household deposits amounted to EUR 83 bn and the average interest rate on the stock was 0.98%. Overnight deposits accounted for EUR 44 bn and deposits with agreed maturity for EUR 24 bn of the total deposit stock. In May households concluded EUR 1.8 bn of new agreements on deposits with agreed maturity. The average interest rate on these rose to 1.73%, from 1.71% in April.
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.
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.
For further information, please contact: Jussi Pajunen, tel. +358 10 831 2343, email: jussi.pajunen(at)bof.fi.Essi Tamminen, tel. +358 10 831 2395, email: essi.tamminen(at)bof.fiThe next news release will be published at 1 pm on 31 July 2012. Related statistical data and graphs are also available on the Bank of Finland website: http://www.suomenpankki.fi/en/tilastot/Pages/default.aspx.
You can also subscribe to the monthly Loans, deposits and interest rates –newsletter to your email from the Bank of Finland website