Continued subdued growth rate for lending to households

Monetary financial institutions' (MFIs) loans to households increased at an annual rate of 4.4 percent in July. This was a decrease compared to June, when the growth rate was 4.6 percent (revised figure). In July 2011, the growth rate was 6.5 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 July amounted to SEK 2 715 billion. This is an increase of SEK 117 billion compared to the corresponding month last year. Most of the increase can be explained by housing loans which accounted for SEK 98 billion and had an annual growth rate of 4.7 percent. Housing loans are loans to households with single-family dwellings, condominiums and tenant-owned apartments as collateral. Outstanding housing loans to households at MFIs amounted to SEK 2 177 billion in July. The remaining part of household lending consists of, among other things, loans for consumption that often lack collateral and other loans where, for example, agricultural buildings comprise the collateral. In July, household loans for consumption amounted to SEK 166 billion and had an annual growth rate of 4.9 percent. Other loans amounted to SEK 372 billion and in July had an annual growth rate of 2.6 percent.

The growth rate for lending by MFIs to non-financial corporations continued to decrease in July. The annual growth in July was 2.8 percent compared to 3.6 (revised figure) percent in June. In July, lending to non-financial corporations amounted to SEK 1 849 billion. This is an increase of SEK 51 billion compared to the corresponding month last year. Most of the loans to non-financial corporations comprised loans with multi-dwelling buildings as collateral. In July, these loans amounted to SEK 553 billion. Loans to tenant-owner associations amounted to SEK 335 billion.

Growth rate, lending to households and non-financial corporations

Increase in household lending rates

After a downward trend over the last few months, household lending rates turned upwards in July. The average lending rate for new agreements with households was 3.83 percent compared to 3.81 percent in June. These rising rates can be mostly explained by increases in the floating interest rate while long-term rates decreased. The floating rate for new household loan agreements rose from 4.07 percent in June to 4.15 percent in July. For loans with a binding interest rate of between three and twelve months, the rate was 3.69 percent in July compared to 3.78 percent in June. The average interest rate on new housing loan agreements amounted in July to 3.70 percent compared to 3.71 percent in June.

In July, the average interest rate for new bank deposits by households was 1.19 percent, which is the same as it was in June. The rate on accounts with fixed periods or a limited number of free withdrawals amounted to 1.93 percent in July, a decrease compared to June, when the rate was 1.99 percent.

The average lending rate of MFIs on new agreements with non-financial corporations was 3.54 percent in July compared to 3.47 percent in June.

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
July 2011	4.26%	6.5%	3.64%	5.0%
June 2012	3.81%	4.6%	3.47%	3.6%
July 2012	3.83%	4.4%	3.54%	2.8%

Increased growth rate for M1

The narrow monetary aggregate M1 had an annual growth rate in July of 5.2 percent, which was higher than in June when the growth rate was 5.0 percent. M1 amounted to SEK 1 599 billion in July.

The growth rate for the broad monetary aggregate M3 was 6.5 percent in July compared to 7.9 percent in June. In total, the M3 amounted to SEK 2 307 billion in July.

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).