The stock of corporate loans granted by banks decreased from June to stand at EUR 57.6 billion at the end of July 2021. In July, the stock of Finnish non-financial corporations’ loans fell below its pre-COVID level in March 2020. At the beginning of the pandemic, the loan stock grew rapidly, and it has contracted thereafter. The annual growth rate peaked in May 2020 (14%). The corporate loan stock has diminished since April 2021, decreasing at an annual rate of -3.6% in July.
Finnish non-financial corporations have taken out less new credit than usual after the first months of the pandemic. Loan drawdowns during the last 12 months were down 16.9% from the same period a year earlier. New drawdowns of corporate loans picked up in June (to EUR 2.0 billion), levelling off to a usual moderate level in July (EUR 1.0 billion). The average interest rate on new loan drawdowns was 1.99% in July 2021. According to the Bank Lending Survey, the growth of corporate loans is expected to continue in the third quarter.
The stock of non-performing Finnish corporate loans has grown during the pandemic. In total, non-financial corporations had EUR 1.3 billion of non-performing loans at end-July 2021, amounting to 2.3% of the total stock. In euro terms, the highest amount of non-performing loans were in real estate activities (EUR 340 million and 3.3% of the loan stock). As regards growth, non-performing loans have increased faster for instance in accommodation and food service activities, where non-performing loans amounted to EUR 60 million and 7.1% of the loan stock. Accommodation and food service activities account for a relatively small share of the total Finnish corporate loan stock.
Corporate deposit growth has been close to zero during the past year. However, compared to the pre-pandemic level, there has been some growth. At the end of July 2021, non-financial corporations held a total of EUR 44.0 billion of deposits with banks operating in Finland. The average interest rate on these deposits was -0.07% in July.
New drawdowns of housing loans by Finnish households amounted to EUR 1.8 billion in July 2021, which is EUR 87 million more than in the same period a year earlier. 8.7% of the new housing loans were housing loans for investment property. At the end of July 2021, the stock of housing loans totalled EUR 105.3 billion, and the year-on-year growth of the stock was 4.4%. Investment properties accounted for 7.9% of the housing loan stock. At the end of July, the household loan stock included EUR 16.6 billion of consumer credit and EUR 17.8 billion of other loans.
Housing corporations drew down EUR 298 million of new loans in July. The average interest rate on new loans drawn by housing corporations rose from June to 1.41% in July. At the end of July, the stock of loans granted to housing corporations stood at EUR 38.3 billion.
At the end of July 2021, the stock of Finnish households’ deposits totalled EUR 108.4 billion, and the average interest rate on these deposits was 0.03%. Overnight deposits accounted for EUR 98.8 billion and deposits with agreed maturity for EUR 2.8 billion of the total deposit stock. In July, Finnish households made EUR 39 million of new agreements on deposits with agreed maturity. The average interest rate on deposits with agreed maturity was 0.20% in July.
Loans and deposits to Finland, preliminary data
|May, EUR million||June, EUR million||July, EUR million||July, 12-month change1, %||Average interest rate, %|
|Loans to households, stock||138,534||139,207||139,733||4,2||1,30|
|- of which housing loans||104,399||104,932||105,330||4,4||0,79|
|- of which buy-to-let mortgages||8,255||8,315||8,362||0,92|
|Loans to non-financial corporations2, stock||97,158||96,725||95,914||-0,4||1,28|
|Deposits by households, stock||106,631||107,833||108,410||7,3||0,03|
|Households' new drawdowns of housing loans||2,078||2,182||1,787||0,73|
|- of which buy-to-let mortgages||192||186||155||0,87|
* Includes loans and deposits in all currencies to residents in Finland. The statistical releases of the Bank of Finland up to January 2021, as well as those of the ECB, present loans and deposits in euro to euro area residents and also include non-profit institutions serving households. For these reasons, the figures in this table differ from those in the aforementioned releases.
1 Rate of change has been calculated from monthly differences in levels adjusted for classification and other revaluation changes.
2 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:
Ville Tolkki, tel. +358 9 183 2420, email: ville.tolkki(at)bof.fi,
Anu Karhu, tel. +358 9 183 2228, email: anu.karhu(at)bof.fi.
The next news release on money and banking statistics will be published at 10:00 on 30 September 2021.
Related statistical data and ‑graphs are also available on the Bank of Finland website at https://www.suomenpankki.fi/en/Statistics/mfi-balance-sheet/.
 Loans granted by banks to non-financial corporations excl. housing corporations.
 More than 90 days past due or there is evidence indicating the customer's inability to perform on its obligations. Non-performing loan stock is reported in net terms, less of impairments and credit losses.
 Excl. overdrafts and credit card credit.