The average rate on euro-denominated housing loans has trended downward ever since the start of 2012.
In October, the average interest rate was 1.75%, which is 0.08 percentage point lower than in September. At end-October, 79% of the housing loan stock was tied to Euribor rates, which are currently at a low level. The second most common interest rate linkage was with the banks' own reference rates, which have also been on the decline since the start of the year. Of housing loans, 6% were tied to fixed rates.
Households' new drawdowns of housing loans amounted to EUR 1.7 bn in October 2012, which is less than in October 2011. The average interest rate on new housing-loan drawdowns fell by 0.01 percentage point from September, to 1.81% in October. At end-October the stock of euro-denominated housing loans was EUR 86 bn and the average interest rate on the stock was 1.75%. The annual growth rate of the housing loan stock moderated slightly in October, to 6.0%. At end-October, household credit comprised EUR 13 bn in consumer credit and EUR 15 in other loans.
New drawdowns of loans to non-financial corporations (excl. overdrafts and credit card credit) amounted to EUR 2.0 bn in October, which is EUR 0.6 bn less than a year earlier. The average interest rate on new corporate-loan drawdowns fell by 0.09 percentage point from September, to 2.13%.
At end-October, the stock of euro-denominated loans to non-financial corporations was EUR 63 bn, of which loans to housing corporations accounted for EUR 16 bn. The annual growth rate of the corporate loan stock fell to 5.4%, from 6.4% in September.
At end-October, the stock of household deposits amounted to EUR 82 bn. The average interest rate on the stock was 0.81%. Overnight deposits accounted for EUR 45 bn and deposits with agreed maturity for EUR 22 bn of the total deposit stock. In October households concluded EUR 2.1 bn of new agreements on deposits with agreed maturity. The average interest rate on these fell to 1.24%, from 1.34% in September.
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.
Key figures of Finnish MFIs' loans and deposits, preliminary data
12-month change1, %
Average interest rate, %
|Loans to households2, stock||113.442||113.909||114.327||5.1||2.12|
|- of which housing loans||84.980||85.466||85.775||6.0||1.75|
|Loans to non-financial corporations2, stock||63.269||63.405||63.256||5.4||2.03|
|Deposits by households2, stock||82.556||83.125||81.953||
|Households' new drawdowns of housing loans||1.744||1.579||1.669||–||1.81|
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
- Analytical accounts of the banking sector (MFIs) in Finland
Essi Tamminen, tel. +358 10 831 2395, email: essi.tamminen (at)bof.fi.
Jyrki Lehtinen, tel. +358 10 831 2376, email: jyrki.lehtinen (at)bof.fi.
The next news release will be published at 4 pm on 3 January 2013.
The statistical data, charts and tables on which this press release is based can also be found on the Bank of Finland website at http://www.suomenpankki.fi/link/2331b6266da3492f832ec75e0f654bd9.aspx?epslanguage=en.