Financial Market Statistics June 2010:

Rising lending rates to households

The Monetary Financial Institutions’, MFIs, lending rates to households continued to rise in June. MFIs include banks and housing credit institutions. The average rate for a new household loan through MFIs was 2.39 percent in June and 2.17 percent in May. After reaching a low of 1.90 percent in December, the trend towards rising rates has gone on during the entire first half of 2010.

It is mainly the short-term interest rates that account for the rise. The average interest rate for new loans to households with periods up to three months rose from 2.02 percent in May to 2.12 percent in June. The corresponding rate for periods over three months to a year was 2.01 percent in June compared to 1.89 percent in May.

The majority of the housing loans were still taken with floating rates, but the percentage with fixed rates is increasing. Of the new loans to households taken in June from housing credit institutions, 28.3 percent of the amount loaned was at a fixed interest rate, compared to 21.3 percent in May.

MFIs' lending rates for new loans to non-financial corporations averaged 1.89 percent in June. Compared to May when the interest rate was 1.74 percent, this was also an increase.

Interest rate and growth rate, lending to households and non-financial corporations

Lower growth for lending to households

The growth rate for household borrowing continued to be stable, but the trend in any case is starting to decrease, although only slightly. The annual growth rate for MFIs' lending to households was 8.9 percent at the end of June, which was slightly lower than in May when it was 9.1 percent. The growth rate was 7.8 percent in June 2009.

Households' loans from MFIs totalled SEK 2 428 billion at the end of June. The majority of this was housing loans, which amounted to SEK 1 625 billion. Meanwhile, households had consumption loans totalling SEK 155 billion. The growth rate for households' housing loans was 10.5 percent while it was 5.0 percent for consumption loans.

Lending by MFIs to non-financial corporations continues to show negative growth. In June the growth rate was -3.5 percent while it was -3.3 percent in May. Lending to non-financial corporations amounted to SEK 1 698 billion at the end of June. In June of 2009, lending to non-financial corporations amounted to SEK 1 759 billion and the growth rate was 4.5 percent.

Growth rate on lending to households and non-financial corporations

  Percent

Higher growth rate for both M1 and M3

The growth rate for the narrow monetary aggregate, M1, was 6.6 percent in June. This is higher than in May when the growth rate was 6.0 percent. In total, M1 amounted to SEK 1 642 billion.

The growth rate for the broad monetary aggregate, M3, increased from 0.3 percent in May to 2.0 percent in June. In total, M3 amounted to SEK 2 209 billion in June.

Money supply, annual growth rate

  Percent

M1 consists of the general public's holdings of bank notes and coins as well as demand deposits by the general public in MFIs and with the central government.  In addition to M1, M3 also includes deposits with certain conditions, repurchases, shares in money market funds, and short term securities.