Suomen Pankki

Growth in the stock of housing corporation loans slowest in over a decade

Share

At the end of November 2020, the stock of housing corporation loans was EUR 34 bn. The annual growth rate was 6,9%. While growth remains fairly strong, it has been slowing steadily since April. Growth in housing corporation loans has not been this slow since May 2009.

In November 2020, housing corporations drew down EUR 370 million in new loans, a decrease of 25% on the same period a year earlier. In January–November 2020, housing corporation loan drawdowns decreased by nearly 16% on the same period a year earlier. The decline in loan drawdowns is partly attributable to a contraction in residential construction and postponement of renovations due to the COVID-19 pandemic. The downward trend in the amount of drawdowns has continued since 2018. The average interest rate on new loans has increased slightly during the year and was 1.23% in November.

Housing rental agencies are also included in the statistic as housing corporations, but most of the housing corporation loans are held by housing companies. Housing companies in the six largest cities account for 61% of all loans to housing companies. There are major regional differences in loan stock development and interest rates. A comprehensive analysis article on housing company loans was published in December (in Finnish only).

Loans

Households’ drawdowns of new housing loans in November 2020 amounted to EUR 1.9 bn, up by EUR 0.2 bn on the corresponding period a year earlier. At the end of November 2020, the stock of euro-denominated housing loans totalled EUR 103.3 bn and the annual growth rate of the stock was 3.0%. Household credit at end-November comprised EUR 16.7 bn in consumer credit and EUR 18.3 bn in other loans.

New drawdowns of loans to non-financial corporations (excl. overdrafts and credit card credit) in November amounted to EUR 1.4 bn. The average interest rate on new corporate loan drawdowns fell from October, to 2.07%. At the end of November, the stock of euro-denominated corporate loans totalled EUR 97.0 bn.

Deposits

The stock of Finnish households’ deposits at the end of November 2020 totalled EUR 102.8 bn and the average interest rate on the deposits was 0.05%. Overnight deposits accounted for EUR 90.5 bn and deposits with an agreed maturity for EUR 3.9 bn of the deposit stock. In November households concluded EUR 271 million of new agreements on deposits with agreed maturity, at an average interest rate of 0.10%.


For further information, please contact:

Olli Tuomikoski, tel. +358 9 183 2146, email: olli.tuomikoski(at)bof.fi
Anu Karhu, tel. +358 9 183 2228, email: anu.karhu(at)bof.fi

The next news release will be published at 10 am on 1 February 2021.

The statistical figures and graphics this release is based on can be viewed on the Bank of Finland website.

Keywords

Images

Links

About Suomen Pankki

Suomen Pankki
Suomen Pankki
Snellmaninaukio, PL 160
00101 HELSINKI

09 1831http://www.bof.fi

The Bank of Finland is the national monetary authority and central bank of Finland. At the same time, it is also a part of the Eurosystem, which is responsible for monetary policy and other central bank tasks in the euro area and administers use of the world’s second largest currency – the euro.

Subscribe to releases from Suomen Pankki

Subscribe to all the latest releases from Suomen Pankki by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from Suomen Pankki

Referensränta och dröjsmålsräntor enligt räntelagen för tiden 1.7–31.12.202525.6.2025 14:00:00 EEST | Pressmeddelande

Referensräntan enligt 12 § i räntelagen (633/1982) är 2,5 % för tiden 1.7–31.12.2025. Dröjsmålsräntan för denna period är 9,5 % per år (referensräntan med tillägg för sju procentenheter enligt 4 § i räntelagen). Den dröjsmålsränta som tillämpas i kommersiella avtal är 10,5 % per år (referensräntan med tillägg för åtta procentenheter enligt 4 a § i räntelagen).

Korkolain mukainen viitekorko ja viivästyskorot 1.7.–31.12.202525.6.2025 14:00:00 EEST | Tiedote

Korkolain (633/1982) 12 §:n mukainen viitekorko ajanjaksona 1.7.–31.12.2025 on 2,5 %. Viivästyskorko tänä ajanjaksona on 9,5 % vuodessa (viitekorko lisättynä korkolain 4 §:n mukaisella 7 prosenttiyksikön lisäkorolla). Kaupallisiin sopimuksiin sovellettavaksi tarkoitettu viivästyskorko on 10,5 % vuodessa (viitekorko lisättynä korkolain 4 a §:n mukaisella 8 prosenttiyksikön lisäkorolla).

Reference rate and penalty interest rates for 1 July – 31 December 202525.6.2025 14:00:00 EEST | Press release

The reference rate under section 12 of the Interest Act (633/1982) for the period 1 July – 31 December 2025 is 2.5 %. The penalty interest rate for the same period is 9.5 % pa (under section 4 of the Act, the reference rate plus seven percentage points). The penalty interest rate applicable to commercial contracts is 10.5 % pa (under section 4 a of the Act, the reference rate plus eight percentage points).

Invitation to the media: 10th RiskLab Finland, Bank of Finland and European Systemic Risk Board Joint Conference on AI and Systemic Risk Analytics, 27 June17.6.2025 14:56:31 EEST | Press invitation

Dear journalist, You are invited to participate in the 10th RiskLab Finland, Bank of Finland and European Systemic Risk Board Joint Conference on AI and Systemic Risk Analytics on Friday 27 June 2025 online or at the Bank of Finland auditorium (Rauhankatu 19, Helsinki). The conference will be held in a hybrid format, allowing virtual participation. The afternoon session starting at 14.00 will entail speeches from Governor Olli Rehn and Nobel Laureate in Economics Simon Johnson followed by an interview of Professor Johnson by Governor Rehn. In the registration form below, we ask you to indicate whether you will participate in the full programme or the afternoon session. Kindly find the programme below. Please note that all times listed in the conference schedule are in Finnish local time (UTC+3 EEST). Please register by 25 June 2025 at 15.00 by using link below: Register here ------ Full programme Time: Friday, 27 June 2025 Place: Bank of Finland Auditorium, address: Rauhankatu 19, Hels

I januari–mars 2025 betalades med kort i första hand till affärer som säljer livsmedel och alkoholfria drycker12.6.2025 10:00:00 EEST | Pressmeddelande

De finländska betaltjänstleverantörernas kunder betalade med betalkort för sammanlagt 17,1 miljarder euro under första kvartalet 2025, vilket var 854 miljoner euro (5,2 %) mer än vid motsvarande tidpunkt året innan. Nästan en tredjedel av summan betalades till försäljare, vars näringsgren är livsmedel och alkoholfria drycker. Kunderna köpte livsmedel och alkoholfria drycker till ett värde av 5,1 miljarder euro under första kvartalet 2025, vilket var 2 % mer än vid motsvarande tidpunkt för ett år sedan.

In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.

Visit our pressroom
World GlobeA line styled icon from Orion Icon Library.HiddenA line styled icon from Orion Icon Library.Eye