News Column

BOF-Loans for holiday residences slightly up on a year earlier

July 2, 2014

ENP Newswire - 02 July 2014

Release date- 01072014 - In the early part of 2014, new drawdowns of loans for holiday residences were slightly up on the corresponding period a year earlier.

Demand for holiday residence loans is higher during the summer months, generally peaking in May-September. In May 2014, the stock of loans for holiday residences granted by credit institutions amounted to EUR 3.2 bn, increasing at an annual growth rate of almost 4.7%. In fact, holiday residence loans increased considerably faster year-on-year than the stock of housing loans, which grew at an annual growth rate of 2.1% in May. Holiday residence loans account for about 3% of all household loans. In statistics, loans for holiday residences are recorded in the loan purpose category 'other loans'.

The interest rate on holiday residence loans has been slightly higher than the rate on housing loans. In May, the average interest rate on the stock of holiday residence loans was 1.78%, and the average interest rate on new drawdowns was 2.24%. The average interest rate on the stock of housing loans, in turn, was 1.54%, and the average interest rate on new drawdowns was 2.00%.


In May 2014, households' new drawdowns of housing loans amounted to EUR 1.4 bn. The average interest rate on new housing-loan drawdowns was 2.00%, slightly down on April. At the end of May, the stock of euro-denominated housing loans totalled EUR 88.8 bn and the annual growth rate of the stock was 2.1%. At end-May, household credit comprised EUR 13 bn in consumer credit and EUR 15 bn in other loans.

New drawdowns of loans to non-financial corporations (excl. overdrafts and credit card credit) amounted in May to EUR 2.2 bn, which is almost as much as in May 2013. The average interest rate on new corporate-loan drawdowns rose from April, to 2.28%. At end-May, the stock of euro-denominated loans to non-financial corporations was EUR 66.1 bn, of which loans to housing corporations accounted for EUR 19.7 bn.


At the end of May, the stock of household deposits totalled EUR 82 bn. The average interest rate on the stock was 0.44%. Overnight deposits accounted for EUR 53.3 bn and deposits with agreed maturity for EUR 15.1 bn of the total deposit stock. In May, households concluded EUR 1.3 bn of new agreements on deposits with agreed maturity. The average interest rate on these was 1.15%.


MFIs comprise all monetary financial institutions operating in Finland.

Loans and deposits comprise all euro-denominated loans and deposits vis-a-vis the euro area as a whole, with countries other than Finland accounting for a very small share of total volumes.

Key figures of Finnish MFIs' loans and deposits, preliminary data

March, EUR million April, EUR million May, EUR million May, 12-month change1, % Average interest rate, %

Loans to households2, stock 116,884 117,101 117,463 2,2 1,98

of which housing loans 88,403 88,569 88,836 2,1 1,54

Loans to non-financial corporations2, stock 65,431 65,779 66,106 6,9 2,00

Deposits by households2, stock 81,171 81,793 82,236 0,3 0,44

Households' new drawdowns of housing loans 1,144 1,306 1,395 2,00

1 Rate of change has been calculated from monthly differences in levels adjusted for classification and other revaluation changes.

2 Households also include non-profit institutions serving households; non-financial corporations also include housing corporations.

Euro-denominated deposits and loans of euro area residents: stock, 12 month rate of change and average interest rate

Euro-denominated loans and deposits of Finnish households

New business on loans and new drawdowns of household loans

Finnish contribution to the euro area monetary aggregates and their main counterparts

Analytical accounts of the banking sector (MFIs) in Finland

For further information, please contact:

Johanna Honkanen, tel. +358 10 831 2992, email: johanna.honkanen(at),

Essi Tamminen, tel. +358 10 831 2395, email: essi.tamminen(at)

The next news release will be published at 1pm on 1 July 2014.

Related statistical data and graphs are also available on the Bank of Finland website:

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: ENP Newswire

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