Non-financial corporations[1] drew down new loans from banks operating in Finland to a total of EUR 2.8 billion in December 2022, slightly more than in net terms on average in December[2]. Corporate loan repayments[3] were higher (EUR 4.6 billion), however, and the corporate loan stock (EUR 62.6 billion) contracted by EUR 1.6 billion on the previous month. As a result, the annual growth rate of the corporate loan stock moderated in December 2022 to 4.4%. The vast majority of the new loans drawn down in December (57%) were taken out by firms in the energy and manufacturing sectors, and the bulk of the loans (81%) were large loans of over EUR 1 million.
The interest rates on new corporate loans rose sharply in 2022. In December 2022, the average interest rate on new corporate loans was 3.80%, a rise of 0.12 percentage points month-on-month. The average interest rate on large loans of over EUR 1 million was 3.54%, while the average interest on small loans of up to EUR 250,000 was 5.12%. The average interest on medium-sized loans (over EUR 250,000 and up to EUR 1 million) rose the most, standing in December at 4.76%. Month-on-month, it rose by 0.29 percentage points.
The average maturity of new corporate loans has lengthened in recent months. In December 2022, the average maturity was 3.3 years, compared with only 1.8 years in August 2022. In December the maturity of new corporate loans moved closer to its historical average[4] of 4.2 years. The majority (57%) of corporate loans drawn down in December were with a maturity of over 1 and up to 5 years.
Loans
Finnish households drew down new housing loans in December 2022 in the amount of EUR 1.1 billion, a decline of EUR 730 million year-on-year. Of the new drawdowns, investment property loans accounted for EUR 90 million. The average interest rate on new housing loans rose from November, to 3.30%. At the end of December 2022, the stock of housing loans stood at EUR 108.5 billion, and the annual growth rate of the loan stock was 0.5%. Investment property loans accounted for EUR 8.8 billion of the housing loan stock[5]. At the end of December 2022, the stock of loans to Finnish households comprised EUR 17.1 billion in consumer credit and EUR 18.0 billion in other loans.
Finnish non-financial corporations drew down new loans in December to a total of EUR 3.4 billion, of which EUR 640 million was loans to housing corporations. The average interest rate on the new drawdowns rose from November, to 3.74%. At the end of December 2022, the stock of loans to Finnish non-financial corporations stood at EUR 104.9 billion, of which loans to housing corporations accounted for EUR 42.3 billion.
Deposits
The stock of Finnish households’ deposits at end-December 2022 totalled EUR 111.8 billion, and the average interest rate on the deposits was 0.21%. Overnight deposits accounted for EUR 101.9 billion and deposits with agreed maturity for EUR 3.7 billion of the deposit stock. In December, households made EUR 580 million of new agreements on deposits with agreed maturity, at an average interest rate of 1.85%.
| Loans and deposits to Finland, preliminary data | |||||
| October, EUR million | November, EUR million | December, EUR million | December, 12-month change1, % | Average interest rate, % | |
| Loans to households, stock | 142,875 | 142,778 | 143,629 | 0,8 | 2,53 |
| - of which housing loans | 107,663 | 107,717 | 108,526 | 0,5 | 1,97 |
| - of which buy-to-let mortgages | 8,791 | 8,776 | 8,770 | 2,10 | |
| Loans to non-financial corporations2, stock | 106,653 | 106,539 | 104,890 | 5,4 | 2,74 |
| Deposits by households, stock | 112,789 | 112,031 | 111,793 | 2,5 | 0,21 |
| Households' new drawdowns of housing loans | 1,265 | 1,180 | 1,071 | 3,30 | |
| - of which buy-to-let mortgages | 91 | 84 | 94 | 3,58 | |
* 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:
Markus Aaltonen, tel. +358 9 183 2395, email: markus.aaltonen(at)bof.fi
Tuomas Nummelin, tel. +358 9 183 2373, email: tuomas.nummelin(at)bof.fi
The next news release on money and banking statistics will be published at 10:00 on 28th February 2023.
Related statistical data and graphs are also available on the Bank of Finland website: https://www.suomenpankki.fi/en/Statistics/mfi-balance-sheet/.
[1] Excl. housing corporations.
[2] Corporate loan drawdowns were slightly higher in December 2022 than the median for December (EUR 2.5 billion) calculated since 2010.
[3] Calculated loan repayments.
[4] The median of calculated average maturities calculated since 2010.
[5] Part of banks recorded changes in the market value of interest rate hedges under the balance sheet item for which an interest rate hedge agreement has been signed between the bank and the customer. For example, when interest rates rose (fell), valuation changes of interest rate hedges recorded in the housing loan stock led to a reduction (increase) in the housing loan stocks of these banks. Due to a change in reporting practices, in December 2022 these items were no longer reported in the balance-sheet item for which the interest rate hedge agreement has been signed. The change in these data does not affect historical data. Because of the change in reporting practices, the housing loan stock grew significantly in December 2022.