Lower growth rate for household loans in June

Monetary financial institutions' (MFIs) loans to households increased at an annual growth rate of 4.5 percent in June. This was a decrease compared to May, when the growth rate was 4.6 percent. In June 2011, the growth rate was 6.7 percent and had a downward trend for the whole of last year. MFIs include banks and housing credit institutions among others.

MFI loans to households in June amounted to SEK 2 705 billion. This is an increase of SEK 118 billion compared to the corresponding month last year. The increase is primarily due to housing loans, which represented SEK 100 billion of the increase and had an annual growth rate of 4.8 percent. Housing loans are loans to households with single-family dwellings, condominiums and tenant-owned apartments as collateral. In June, household’s outstanding housing loans amounted to SEK 2 171 billion. The remaining part of household lending consists of, among other things, loans for consumption that often lack collateral and loans to farmers, where agricultural buildings comprise the collateral. In June, household loans for consumption amounted to SEK 166 billion and had an annual growth rate of 5.6 percent. Other loans amounted to SEK 368 billion in June and had an annual growth rate of 2.3 percent.

In June, the growth rate in lending by MFIs to non-financial corporations continued to decrease. The annual growth rate in June was 3.8 percent compared to 4.5 percent in May. Lending to non-financial corporations in June amounted to SEK 1 863 billion. This represents an increase of SEK 71 billion compared with the corresponding month last year. Loans with multi-dwelling buildings as collateral represented the largest part of loans to non-financial corporations. These loans amounted to SEK 553 billion in June.

Growth rate, lending to households and non-financial corporations

Continued decline in household lending rates

Household lending rates continued to drop in June. The average interest rate for new loan agreements to households was 3.81 percent in June, compared to 3.92 percent in May. The floating rate fell from 4.16 percent in May to 4.07 percent in June. The interest rate for new agreements with a fixed period of over 3 months up to 1 year was unchanged at 3.78 percent. The average interest rate on new housing loan agreements in June was 3.71 percent, which was a decrease compared with May when the rate was 3.79 percent.

In June, the average interest rate for new bank deposits by households was 1.19 percent. The rate on accounts with fixed periods or a limited number of free withdrawals was 1.99 percent in June.

The average lending rate of MFIs on new agreements with non-financial enterprises was 3.47 percent in June compared with 3.56 percent in May.

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
June 2011	4.14%	6.7%	3.53%	5.1%
May 2012	3.92%	4.6%	3.56%	4.5%
June 2012	3.81%	4.5%	3.47%	3.8%

Increased growth rate for M1

The narrow monetary aggregate M1 had an annual growth rate in June of 5.0 percent, which was lower than in May when the growth rate was 4.0 percent. The change in the growth rate of M1 is primarily due to an increase in on demand-deposits for households. M1 amounted to SEK 1 628 billion in June.

The growth rate for the broad monetary aggregate M3 was 7.9 percent in June. In May, the growth rate was 9.0 percent. In total, the M3 amounted to SEK 2 357 billion in June.

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 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).