Subdued growth rate for lending to households continues

Monetary financial institutions' (MFIs) loans to households increased at an annual growth rate of 4.6 percent in May. This was a decrease compared to April, when the growth rate was 4.8 percent. In May 2011, the growth rate was 7.0 percent and had a downward trend for the whole of last year.

MFI loans to households in April amounted to SEK 2 689 billion. This is an increase of SEK 118 billion compared to the corresponding month last year. Most of the increase can be explained by a rise in housing loans of SEK 100 billion during the same period. This represents an annual growth rate of 4.9 percent. Housing loans are loans to households with single-family dwellings, condominiums and tenant-owned apartments as collateral. In May, the outstanding housing loans of households at MFIs amounted to SEK 2 159 billion. The remaining part of household borrowing consists of, among other things, loans for consumption that often lack collateral and loans to farmers where agricultural buildings comprise the collateral. In May, household loans for consumption amounted to SEK 166 billion and had an annual growth rate of 5.9 percent. Other loans amounted to SEK 364 billion and in May had an annual growth rate of 2.5 percent.

Lending by MFIs to non-financial corporations amounted to SEK 1 863 billion in May and had an annual growth rate of 4.5 percent. This was a decrease compared to April, when the growth rate was 5.3 percent. In May 2011, the growth rate was 4.4 per cent. Loans with multi-dwelling buildings as collateral accounted for the majority of loans to non-financial corporations. In April, these loans amounted to SEK 549 billion. Unsecured loans, i.e. loans without collateral, amounted to SEK 341 billion.

Growth rate, lending to households and non-financial corporations

Continued downturn in household lending rates

In May, the average interest rate on new household loan agreements was 3.92 percent, which was a decrease compared to April when the interest rate was 3.94 percent. The floating rate continued its downward trend and fell from 4.18 percent in April to 4.16 percent in May. For new agreements with a binding interest rate of between 3 and 12 months, the rate rose from 3.58 percent in April to 3.78 percent in May. The average interest rate on new housing loan agreements amounted in May to 3.79 percent, which was a decrease compared to April when the rate was 3.86 percent.

In May, the average interest rate for new bank deposits by households was 1.21 percent. The rate on accounts with fixed periods or a limited number of free withdrawals was 1.98 percent.

The average MFI lending rate on new agreements to non-financial corporations was 3.56 percent in May, compared to 3.47 percent in April (revised figure).

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

	Interest rate, new agreements to housholds	Growth rate, lending to households	Interest rate, new agreements to non-financial corporations	Growth rate, lending to non-financial corporations
May 2011	4.14%	7.0%	3.47%	4.4%
April 2012	3.94%	4.8%	3.47%	5.3%
May 2012	3.92%	4.6%	3.56%	4.5%

Reduced growth rate for M1 and M3

The narrow monetary aggregate M1 had an annual growth rate in May of 4.0 percent, which was lower than in April when the growth rate was 4.3 percent. M1 in May was SEK 1 564 billion.

The growth rate for the broad monetary aggregate, M3, was 9.0 percent in May. In April, the growth rate was 10.1 percent. In total, M3 amounted to SEK 2 318 billion in May.

Money supply, annual growth rate

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.

Definitions and explanations

Statistics Sweden compiles monthly financial market statistics on behalf of the Riksbank. These statistics are based mainly on reports from monetary financial institutions (MFIs). The MFI sector consists of banks, housing credit institutions, finance companies, institutions financing municipalities and companies, monetary securities companies and monetary investment funds (money market funds).