Financial accounts second quarter 2008:

Households continue to borrow

Households' financial savings amounted to SEK 25 billion during the second quarter 2008. Savings were supported by bank deposits and a high rate of insurance savings, but were driven down somewhat by the net sale of shares and funds and a relatively large increase in borrowing.

The quarter's savings of SEK 25 billion can be compared to the SEK 41 billion for the second quarter of 2007 and minus SEK 9 billion in 2006. The financial savings are calculated as the net of transactions in financial assets and debts that occur during the quarter. Financial assets were acquired in this quarter for SEK 87 billion and the increase in debt amounted to SEK 62 billion.

During the second quarter the net bank deposits amounted to SEK 47 billion. This figure is high but lower than last year's record amount of SEK 57 billion. Bank deposits increased in the second quarter of 2006 by as much as they did this year. Bank deposits are usually high during the second quarter when dividends from shares and most of the tax refunds are paid out.  Households’ net sales of shares during the quarter amounted to SEK 11 billion. Households made net purchases of shares in the first quarter of this year, but aside from that, households have sold more shares than they purchased every quarter since the spring of 2006. Households continued to unload funds for the ninth quarter in a row. Net sales in funds amounted to SEK 9 billion in this quarter, of which foreign funds comprised SEK 7 billion. Net sales in equity funds were somewhat lower this quarter than they were last quarter. Net sales amounted to SEK 1.5 billion this quarter. This can be compared to the net sales of SEK 7 billion in the first quarter of 2008 and SEK 6 billion in the quarter before that.

Insurance savings were high during the second quarter. Fund capital amounted to SEK 58 billion. Collective insurance savings amounted to SEK 42 billion, of which SEK 11 billion comprised PPM pension savings. Collective insurance savings amounted to SEK 33 billion in the second quarter of last year, of which SEK 10 billion was PPM pension savings. Individual insurance savings were also higher this year than last year. These savings amounted to SEK 16 billion, compared to SEK 9 billion in the second quarter of 2007.

High degree of borrowing

The debt increase for households was high during the second quarter this year. It amounted to SEK 62 billion, which can be compared to the second quarters of 2007 and 2006 when it was SEK 54 billion for both years. As usual, banks and housing finance institutions accounted for nearly all of the increase in debt. The combined figure for this quarter was SEK 59 billion. This can be compared to the second quarter of 2007 and 2006 when the increase in debt through banks and housing finance institutions was SEK 51 billion for both years. Bank loans amounted to SEK 29 billion and loans through housing finance institutions amounted to SEK 31 billion. The increase in debt was lower this year than for the same quarter of 2006 and 2007 when it was SEK 37 billion and SEK 35 billion, respectively. However, the lower increase in debt to housing finance institutions can be explained by the increased in bank loans for housing purposes.

Households' total debt burden amounted to SEK 2 294 billion as of the last of June, of which loans from financial housing institutions made up 55 percent of SEK 1 245 billion. Bank loans made up 30 percent or SEK 696 billion. Aside from these larger creditors, households are in debt to CSN. Student loans amount to SEK 180 billion, which accounts for 8 percent of the total debt burden. In a year the total debt has increased by SEK 201 billion from the last of June of last year to the last of June this year. The increase was SEK 199 billion during the same period between 2006 and 2007.

Lower wealth
The stock exchange dropped 11 percent during the second quarter. Households' assets in shares, funds and insurances continued to decrease in value. Households' holdings were worth SEK 536 billion at the end of the second quarter, a decrease of SEK 89 billion during the quarter. Net sales made up SEK 12 billion and the remainder was due to depreciation. Funds decreased during the quarter by SEK 28 billion, of which depreciation accounted for SEK 17 billion of the decrease. Holdings in funds were worth SEK 462 billion as of the last of June. The value of the total insurance holdings, collective and individual insurances, decreased by SEK 12 billion and was worth SEK 1 679 billion at the close of the quarter. Total insurance savings saw a net increase of more than SEK 58 billion, while depreciation amounted to SEK 60 billion.

Total financial assets decreased during the second quarter from SEK 4 859 to SEK 4 809 billion. Debt increased from SEK 2 232 billion to SEK 2 294 billion. This gives households a net wealth of SEK 2 515 billion, a decrease of SEK 112 billion during the quarter.

Non-financial sector accounts
Statistics Sweden today also publishes non-financial sector accounts up to and including the second quarter of 2008. The tables for the Incomes, outlays and capital accounts by institutional sector and transaction item as well as for Rest of the World by transaction item are available in the Statistical database http://www.scb.se/ under the heading National Accounts: http://www.ssd.scb.se/databaser/makro/produkt.asp?produktid=NR0103&lang=2

Definitions and explanations

The figures in this text refer to households including their non-profit organisations, such as trade unions, religious groups and some foundations working in the interest of households.

Publications

A more detailed presentation of this survey is published in the Statistical bulletin: FM17SM0803

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Next publishing will be

The next press release in the series will be published on 18 December 2008 at 09.30.

Responsible authority Swedish Financial Supervisory Authority Box 7821, S-103 97 Stockholm Fax + 46 8 24 13 35 Tel. + 46 8 787 80 00	Producer Statistics Sweden Box 24 300 SE-104 51 Stockholm Fax +46 8 506 949 43 Enquiries Maria Andersson Tel. +46 8 506 940 74 E-mail maria.andersson@scb.se Nicolai Nystrand Tel. +46 8 506 945 45 E-mail nicolai.nystrand@scb.se
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