New drawdowns of housing loans moderate in March

MFI balance sheet Statistics Wednesday 30 April 2014, 1:00 PM

In March 2014, new drawdowns of housing loans were slightly up on the year-earlier period. Despite the slight pick up in March, in the first quarter as a whole, households' new drawdowns of housing loans totalled EUR 3.2 bn, which was EUR 0.2 bn less than in the first quarter of 2013. Similarly, new agreements on housing loans concluded in March 2014 were up on March 2013, but contracted in the first quarter as a whole, by EUR 0.4 bn from the previous year. The annual growth rate of the housing loan stock moderated further, from 2.3% at the beginning of the year to 2.0% in March. The annual growth rate of the housing loan stock has been moderating since summer 2012 due to increasing economic uncertainty. The annual growth rate recorded in March is the lowest to date in the 2000s.

Loans

In March 2014, households' new drawdowns of housing loans amounted to EUR 1.1 bn. The average interest rate on new housing-loan drawdowns was 2.03%, unchanged from February. At the end of March, the stock of euro-denominated housing loans was EUR 88.4 bn. The annual growth rate of the housing loan stock moderated further, to 2.0%. At end-March, household credit comprised EUR 13 bn in consumer credit and EUR 15 bn in other loans.

New drawdowns of loans to non-financial corporations (excl. overdrafts and credit card credit) amounted in March to EUR 2.3 bn, which is EUR 0.3 bn more than in March 2013. The average interest rate on new corporate-loan drawdowns fell slightly from February, to 2.41%. At end-March, the stock of euro-denominated loans to non-financial corporations was EUR 65.4 bn, of which loans to housing corporations accounted for EUR 19.3 bn.

Deposits

At the end of March, the stock of household deposits totalled EUR 82 bn. The average interest rate on the stock was 0.45%. Overnight deposits accounted for EUR 51.3 bn and deposits with agreed maturity for EUR 15.7 bn of the total deposit stock. In March, households concluded EUR 1 bn of new agreements on deposits with agreed maturity. The average interest rate on these was 1.07%.

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, % Average interest rate, %
Loans to households2, stock 116,736 116,720 116,884 2.3 1,95
    - of which housing loans 88,286 88,326 88,403 2.0 1,51
Loans to non-financial corporations2, stock  64,605 65,234 65,419 7.5 2,00
Deposits by households2, stock 81,242 81,185 81,186 -1.2 0,45
Households' new drawdowns of housing loans 1,017 1,073 1,144 2,03

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:

Essi Tamminen, tel. +358 10 831 2395, email: essi.tamminen(at)bof.fi.
Johanna Honkanen, tel. +358 10 831 2992, email: johanna.honkanen(at)bof.fi

The next news release will be published at 1 pm on 2 June 2014.
Related statistical data and graphs are also available on the Bank of Finland website:
http://www.suomenpankki.fi/link/2331b6266da3492f832ec75e0f654bd9.aspx?epslanguage=en.