Decreasing growth rate for lending to households

The annual rate of growth, of monetary finance institutions, MFI:s, lending to households, decreased by 11.7 percent in November 2006, from the top quotation in March, 13.3 of the growth rate. Housing credit institutions’ lending followed the same trend as the growth rate for MFI:s. The majority of deposit and lending rates increased. 48 percent of lending rates from housing credit institutions for new loans granted during the month were loans with fixed terms, compared to 39 percent in March which was the minimum share in 2006 for loans with fixed terms.

Lending to households

MFI:s lending to households was SEK 1 728 billion in November, which is an annual growth rate of 11.7 percent.  During the last months, the growth rate has decreased from the top quotation in March of 13.3 percent.
At the end of November, the total volume of lending to households for housing purchases from monetary finance institutions, MFI:s, amounted to SEK 1 124 billion, with an annual growth rate of 12.2 percent. Housing credit institutions’ total lending to households amounted to SEK 983 billion and the annual growth rate was also 12.2 percent.
The growth rate for lending for housing purchases followed the same pattern as the growth rate for MFI:s total lending to households, with a top quotation in March and after that a decrease during recent months.
At the same time, housing credit institutions' lending rate for new loans granted during the month is still on a high level, amounting to SEK 29 billion in November. 48 percent of these were loans with fixed terms compared to 39 percent in March which was the minimum share in 2006.

MFIs lending to households 12-month percent change

Deposits and lending rates increases

MFI:s average lending rates to households on outstanding amounts continued to decrease and were 4.18 percent in November 2006, comparing to 4.10 percent in the previous month and 3.69 percent at the beginning of the year. From the beginning of the year, the average lending rates from MFI:s to non-financial corporations on outstanding amounts has increased from 3.31 to 3.92 percent and from the previous month, it has increased by 0.08 percentage points.

In November, MFI:s average lending rates to households on new business (new loans granted each month) was 4.12 percent which is an increase from 3.28 percent at the beginning of the year and 4.05 percent from the previous month. During the year, MFI:s' loans to households with floating interest rates or a rate fixation up to three months have increased from 2.91 percent at the beginning of the year to 4.01 percent in November (previous month 3.91).

The lending rate for new loans granted during the month from housing credit institutions has increased to 3.89 percent from 3.83 during the previous month. From the beginning of the year, this is an increase of 0.71 percentage points. The deposits are also increasing, and in November the average deposits from banks to households were 1.40 percent, comparing to 0.54 percent at the beginning of the year and 1.25 percent in the previous month.

One exception from the increasing rates is the housing credit institutions' lending rate for new loans granted during the month to households with a fixation of over one year, which has decreased during recent months. For example, new loans granted during the month with a fixation of over five years have decreased from 4.79 percent in September to 4.67 percent in November.

Money Supply

The annual growth rate of M3 increased to 16.7 percent in November from 14.6 percent in October 2006. M1 increased to 11.6 percent in November compared to 10.8 percent in October. M1, which can be described as the public's holdings of bills and coins and the public's spot deposits in MFI (monetary finance institutes) and the government amounted to SEK 1 187 billion in November 2006 and, for M3, which also includes interest-bearing securities, the corresponding figure was SEK 1 720 billion.

Money supply 12-month percent change

Definitions and explanations

Statistics Sweden, on behalf of the Riksbank, compiles monthly financial market statistics. This statistics are based on the MFI-report. The MFI sector consists of banks, housing finance institutions, finance companies, institutions financed by municipalities and companies and monetary securities companies.

More about...

More graphs, tables, time series and information on methodology used are available from Statistics Sweden, Financial Market Statistics Unit.

Next publishing will be

The next press release in this series is scheduled for publication on 2007-01-26 09.30.

Producer Statistics Sweden Box 23 400 SE-104 51 Stockholm, Sweden	Enquiries Kristian Tegbring Tel. Tel. +46-(0)8-506 944 97 E-mail kristian.tegbring@scb.se Jan-Olof Elldin Tel. Tel. +46-(0)8-506 941 96 E-mail jan-olof.elldin@scb.se
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