Housing loans

Euribor rates have increased their popularity as reference rates for new housing loans throughout the early part of the year. In March 2012, as much as 84% of new housing loans were linked to a Euribor rate. As in the previous months, 11% of new housing-loan drawdowns were linked to a fixed rate and almost 6% to banks' own reference rates. In December 2011, as much as 12% of new housing loans were still linked to prime rates. The fall in Euribor rates and their increased popularity has also induced a drop in average interest rates on new housing loans in the early part of the year. In March 2012, the average interest rate on new housing-loan drawdowns was 2.23%.

Loans 

Households' new drawdowns of housing loans amounted to EUR 1.6 bn in March 2012, which is almost as much as a year earlier. The average interest rate on new housing-loan drawdowns fell by 0.14 percentage point from February, to 2.23%. At end-March the stock of euro-denominated housing loans amounted to EUR 82.5 bn and carried an average interest rate of 2.34%. The annual growth rate of the housing loan stock increased from February, to 6.5% in March.

New drawdowns of loans to non-financial corporations (excluding overdrafts and credit card credit) amounted to EUR 2.0 bn in March, which is about EUR 300 m more than a year earlier. The average interest rate on new corporate loans fell to 2.19%, from 2.30% in February. At end-March the stock of euro-denominated loans to non-financial corporations amounted to EUR 61.9 bn, of which loans to housing corporations totalled EUR 14.4 bn. The annual growth rate of the corporate loan stock accelerated to 7.9%, from 7.4% in February.

Deposits

At end-March the stock of household deposits totalled EUR 82.1 bn. The average interest rate on the stock was 1.02%. Households concluded new agreements on deposits with an agreed maturity in the amount of EUR 2.3 bn. The average interest rate on these fell to 1.82%, from 1.89% in February.

In the first quarter of 2012 households concluded 2,475 new long-term savings contracts. At end-March the total number of long-term savings contracts was 20,885. In January-March households deposited EUR 5.1 m in long-term savings accounts. At end-March long-term savings accounts amounted to EUR 31.9 m..

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.

 

Key figures of Finnish MFIs' loans and deposits, preliminary data

  January,
EUR million
February,
EUR million
March,
EUR million
March,
12-month change1, %

March,
average interest rate, %

Loans to households2, stock 109.726 109.984 110.468 5.4 2.70
    - of which housing loans 81.884 82.119 82.546 6.5 2.34
Loans to non-financial corporations2, stock 60.997 61.647 61.927 7.9 2.52
Deposits by households2, stock 81.894 81.636 82.066

5.0

1.02
Households' new drawdowns of housing loans 1.252 1.370 1.586 2.23

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

The next news release will be published at 1 pm on 31 May 2012.

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