Increase in growth rate for lending to households

In November, Monetary financial institutions’ (MFIs) loans to households increased at an annual rate of 4.6 percent. This is an increase compared to October when the growth rate was 4.5 percent. The growth rate was 5.4 percent in November of 2011. MFIs include banks and housing credit institutions among others.

Households' borrowing from MFIs in November amounted to SEK 2 756 billion. This represents an increase of SEK 116 billion compared with the corresponding month last year. Most of the increase can be explained by housing loans, which accounted for SEK 99 billion of the increase 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 2 215 billion in November. The remaining part of household lending consists of, among other things, loans for consumption which often lack collateral and other loans where, for example, agricultural buildings comprise the collateral. In November, household loans for consumption amounted to SEK 167 billion and had an annual growth rate of 6.3 percent.

Lending by MFIs to non-financial corporations amounted to SEK 1 861 billion and had an annual growth rate of 2.0 percent. This is a decrease compared to October, when the growth rate was 2.8 percent. The growth rate was 5.3 percent in November of 2011. Loans with multi-dwelling buildings as collateral accounted for the majority of loans to non-financial corporations. In November, these loans amounted to SEK 561 billion. Unsecured loans, i.e. loans without collateral, amounted to SEK 331 billion.

Growth rate, lending to households and non-financial corporations

Decrease for household lending rates

In November, household lending rates continued to decrease. The average lending rate from MFIs for new agreements with households was 3.29 percent in November, compared to 3.38 percent in October. The falling lending rates can be explained by decreases in both short-term and long-term interest rates. The floating rate for new agreements fell from 3.59 percent in October to 3.44 percent in November. For loans with a fixed period of more than five years, the interest rate for new agreements was 3.61 percent in November compared with 3.80 in October. In November, the average interest rate for new housing loan agreements was 3.20 percent compared with 3.28 percent in October.

The average interest rate in November for new deposits in bank accounts was 0.88 percent, which represents a decrease compared with October when the deposit rate was 0.90 percent. In November of 2011 the average interest rate for new deposits of households was 1.38 percent.

The average lending rate of MFIs on new agreements with non-financial corporations was 2.90 percent in November compared with 3.05 percent in October.

Interest rate and growth, 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
Nov 2011	4.18%	5.4%	3.83%	5.3%
Oct 2012	3.38%	4.5%	3.05%	2.8%
Nov 2012	3.29%	4.6%	2.90%	2.0%

Higher growth rate for M1 and M3

The narrow monetary aggregate M1 had an annual growth rate of 5.0 percent in November. This can be compared with October when the growth rate was 4.5 percent. M1 amounted to SEK 1 643 billion in November.

The growth rate for the broad monetary aggregate M3 was 4.4 percent in November. The growth rate was 4.0 percent in October. In total, the M3 amounted to SEK 2 380 billion in November.

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 includes deposits with certain conditions, repos, 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 the MFI report. 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).