Financial market statistics, March 2023
Higher interest rates and weaker loan growth
Statistical news from Statistics Sweden 2023-04-28 8.00
The annual growth rate for loans to households have continued to slow down and the growth for mortgages from monetary financial institutions was 2.8 percent in March. The growth rate for lending to non-financial corporations slowed down as well. Average interest rates continued to increase during the month for both households and non-financial corporations.
Developments in March 2023 summarised
Lending
- The annual growth rate of lending to households was 2.3 percent. Mortgages accounted for 83 percent of total lending to households. The annual growth rate for consumption loans was 1.0 percent and accounted for 6 percent of total lending to households.
- The annual growth rate for lending to non-financial corporations was in March 10.3 percent, the lowest growth rate since February 2022 when it was 8.8 percent.
- In total, lending from MFIs to households and non-financial corporations amounted to SEK 7 893 billion. Loans to households accounted for 62 percent (SEK 4 901 billion) and loans to non-financial corporations accounted for 38 percent (SEK 2 992 billion).
- The annual growth rate of mortgages from institutes other than MFIs on mortgage markets, known as mortgage credit companies, was noted at 17.6 percent, down from 19.6 percent in February. Mortgage credit companies accounted for 1.3 percent (SEK 52 billion) of total mortgages to households which amount to SEK 4 109 billion.
Deposits
- In total, households deposits amounted to SEK 2 654 billion. On demand deposits accounted for 82 percent (SEK 2 176 billion). In March 2022 on demand deposits accounted for 90 percent (SEK 2 562 billion).
- Notes and coins held by Swedish non-bank public, previously defined as the money supply measurement M0, amounted to SEK 63 billion in March 2023. The money supply M3 amounted to SEK 4 849 billion and had an annual growth rate of -2.3 percent, negative for the first time since 2010. A stronger negative development was last noted in February 2001 with -2.4 percent.
Interest rates on lending and deposits
- The average interest rate on new agreements for mortgages to households was 4.02 percent, higher than 4.00 percent for the first time since December 2011. The average floating rate on mortgages was 3.98 percent.
- The average fixed interest rate between 1 and 5 years on new agreements for mortgages to households was 4.09 percent, against 1.84 percent in March 2022.
- The average interest rate on new agreements for lending to non-financial corporations was 4.75 percent, to be compared with 1.51 percent in March 2022.
- Households’ average interest rate on new bank deposits was 1.28 percent. The interest rate on accounts with fixed periods or a limited number of free withdrawals was 2.09 percent, higher than 2.00 percent for the first time since February 2012.
- Non-financial corporations’ average interest rate for new bank deposits was 1.39 percent, also the highest mark in eleven years. The interest rate on accounts with fixed periods or a limited number of free withdrawals was 2.59 percent.
About the statistics
The financial market statistics cover mainly monetary financial institutions (MFIs), but also include new institutes on mortgage markets, known as mortgage credit companies. Unless otherwise stated, the statistical news refers to MFIs.
The statistics include balance sheet statistics (including lending and deposits), interest rates, and monetary aggregates. International banking statistics are also published on a quarterly basis.
Definitions and explanations
The financial market statistics are compiled monthly. Revisions of the statistics may occur.
Monetary financial institutions (MFIs) comprise banks, housing credit institutions, finance companies, institutions financing municipalities and companies, monetary securities companies and monetary investment funds (money market funds).
Mortgage credit companies refers to non-MFIinstitutions that have authorisation from Finansinspektionen to issue mortgages. Usually, mortgage credit companies sell the mortgages to alternative investment funds (AIFs). The AIFs included in the financial markets statistics are linked to mortgage credit companies, and whose assets mainly comprise mortgages.
Growth rates are calculated to illustrate the development of transactions as from the corresponding period the previous year. The rates are calculated based on changes in stocks; adjustments are made so that the growth rate is not affected by stock changes unrelated to transactions, for example if an institute is added or removed from the population.
Lending to households is divided into three categories: housing loans, consumer credit, and other lending. The purpose of a loan is not directly measured, but is approximated by categorising lending by type of collateral. Housing loans are defined as loans to private individuals or entrepreneurial households with housing as collateral. Consumer credit refers to lending to private individuals, generally without collateral. Other lending includes all other lending, for example lending to non-profit institutions serving households.
New agreements refer to agreements concluded during a given month. Interest rate statistics on new agreements is a way of measuring the price formation on loans and deposits in a given period. These statistics include all financial agreements in which the terms and conditions affecting the interest rates on deposits and lending are determined for the first time. The statistics also include renegotiations of existing loans and relocation of loans. Changes in floating interest rates due to automatic adjustments are not considered new agreements.
Next publishing will be
The next item of statistical news in this series is scheduled for publication on 2023-05-29.
Statistical Database
More information is available in the Statistical Database
Feel free to use the facts from this statistical news but remember to state Source: Statistics Sweden.