Financial Market Statistics August 2010:

Higher interest rates for households and non-financial corporations

The lending rates of Monetary Financial Institutions (MFIs) to households continued to rise in August 2010. MFIs include banks and housing credit institutions. The average rate for a new household loan through MFIs was 2.66 percent in August and 2.56 percent in July and 2.39 percent in June.

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 2.36 percent in July to 2.47 percent in August. The corresponding rate for periods greater than three months to a year was 2.20 percent in August compared to 2.19 percent in July.

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 August from housing credit institutions, 33.8 percent of the amount loaned was at a fixed interest rate, compared to 30.4 percent in July. The trend with this increased percentage taken at a fixed rate of interest has remained in an upwards direction for the fourth consecutive month. In May, the percentage was 21.3 percent.

MFIs' lending rates for new loans to non-financial corporations also increased in August. The average interest rate increased from 2.00 percent in July to 2.12 percent in August.

Stable growth rate for lending to households in August

The annual growth rate for lending to households was 8.8 percent at the end of August. Thus, the lending growth rate was unchanged compared to July. In December 2009, the growth rate for lending to households was at 9.3 percent.

Households' loans from MFIs totalled SEK 2 452 billion at the end of August. Lending for housing purposes accounted for SEK 1 649 billion while households' consumption loans accounted for SEK 155 billion. The growth rate for households' loans for housing purposes is at 10.3 percent while loans for consumption have increased by 4.7 percent since the corresponding period of last year.

Lending by MFIs to non-financial corporations continues to show negative growth. In August the growth rate was minus 1.5 percent while it was minus 1.8 percent in July. Lending to non-financial corporations amounted to SEK 1 703 billion at the end of August. In August of 2009, lending to non-financial corporations amounted to SEK 1 728 billion and the growth rate was 2.9 percent.

Lower growth rate for both M1 and M3

The growth rate for the narrow monetary aggregate, M1, was 4.7 percent in August. This is lower than in July when the growth rate was 7.6 percent. In total, M1 amounted to SEK 1 621 billion.

The growth rate for the broad monetary aggregate, M3, decreased from 5.4 percent in July to 2.8 percent in August. In August 2009 the growth rate for M3 was minus 1.3 percent. In total the M3 amounted to SEK 2 209 billion in August 2010.

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.