Growth of household deposit stock decelerated

Statistics Wednesday 10 August 2022, 10:00 AM

The stock of Finnish households’ deposits[1] exceeded EUR 113 billion in June 2022, a good EUR 5 billion more than a year earlier. In June 2022, the deposit stock grew by almost EUR 900 million. However, the annual rate of growth of the deposit stock has slowed down significantly. In June 2022, the growth rate was 4.8%, as opposed to over 7% in the same period a year earlier. The growth rate has not been slower since September 2018. 92% of households’ assets on deposit accounts was held on transaction accounts[2]. In June, the average interest on transaction accounts was almost zero (0.02%).

 

2022Q2_en.png

 

Households’ equity and fund share holdings continued to decrease in June

The value of listed shares held by households has declined by almost EUR 12 billion since the end of 2021. During the same period, households have invested a further EUR 1.2 billion in net terms in shares. In June 2022, the value of listed shares held by households stood at EUR 44.6 billion. The value of the shareholdings peaked (at EUR 56.1 billion) in August 2021.

Households’ fund share holdings have declined by EUR 4.5 billion from their peak at end-2021. These holdings have decreased primarily due to the depreciation of equity funds, but the value of bond funds has also declined significantly. Furthermore, households’ redemptions from investment funds outweighed new subscriptions in January–June 2022.[3]  At the end of June 2022, the value of investment fund shares held by Finnish households stood at EUR 29.8 billion. Households’ fund investments were mainly (39%) in equity funds.

 

Finnish deposits and investments (EUR million), 2022Q2
  All Households Employment pension schemes
  stock (flows) change in valuation stock (flows) change in valuation stock (flows) change in valuation
Finnish investments            
Listed shares 205 897  -22 970 44 568 -4 988 33 140 -4 019
  (-1 849)   (326)   (-66)  
- in domestic shares 126 249 -12 062 39 536 -4 054 16 122 -1 716
  (-1 879)   (274)   (-82)  
             
Bonds 232 503 -11 065 1 214 -62 27 072 -1 421
  (-2 699)   (-8)   (-1 577)  
- in domestic bonds 108 865 -5 355 630 -32 3 550 -259
  (443)   (-46)   (-453)  
             
Fund shares            
Domestic investment funds 106 949 -8 650 29 759 -2 627 4 962 -314
  (-2 490)   (-88)   (-508)  
             
Foreign funds 182 513 -4 103 5 431 -540 125 714 -75
  (2 566 )   (709)   (449)  
             
Finnish bank deposits             
Overnight deposits (transaction accounts) 188 571 111 104 026 16 8 230 6
  (1 506)   (2 330)   (1 194)  
Other deposits 12 320 7 9 010 1 -* -*
  (564)   (86)   -*  

*confidential

 

For more information, please contact:

 

Markus Aaltonen, tel. +358 9 183 2395, email: markus.aaltonen(at)bof.fi.

 

Related statistical data and graphs are also available on the Bank of Finland website: shttps://www.suomenpankki.fi/en/Statistics/saving-and-investing/.

 

The next news release on saving and investing will be published at 10 am on 9 November 2022.

 

[1] Stock of deposits at credit institutions operating in Finland.

[2] Transaction accounts refer to overnight deposits repayable on demand. In addition to daily banking accounts, they include other household accounts which do not have withdrawal restrictions but only enable cash withdrawals or which can only be used via another account.

[3] In January–June 2022, households redeemed a total of EUR 270 million of fund shares in net terms.