The annual growth rate of household loans in Sweden has continued to decelerate, with housing loans from Monetary Financial Institutions (MFI) growing at a rate of 2.0 percent in May. The growth rate of lending to non-financial corporations has also moderated. Average lending rates for both households and non-financial corporations continued to rise during the month.
Key highlights for May 2023:
Lending:
- The annual growth rate for MFI’s total lending to households stood at 1.5 percent. Housing loans accounted for 83 percent of total household lending, while consumer loans, comprising 6 percent of household loans, had a growth rate of 0.8 percent.
- Lending to non-financial corporations grew by 7.8 percent in May 2023 on an annual basis, marking the lowest growth rate since January 2022 when it was 7.2 percent.
- The total lending from MFIs to households and non-financial corporations amounted to SEK 7,924 billion. Of this, loans to households accounted for 62 percent (SEK 4,904 billion), and loans to corporations accounted for 38 percent (SEK 3,020 billion).
- Housing loans from entities other than MFIs in the mortgage market, known as housing credit institutions, experienced an annual growth rate of 4.7 percent. Housing credit institutions accounted for 1.2 percent (SEK 49 billion) of households’ total housing loans, which amounted to SEK 4,107 billion.
Lending to Households and Non-Financial Corporations – Annual Growth Rate Financial Market Statistics, May 2023
Deposits:
- MFI’s total deposits from households amounted to SEK 2,674 billion. Demand deposits represented 80 percent (SEK 2,152 billion) of the total. In May 2022, demand deposits accounted for 90 percent of the then-total household deposits of SEK 2,624 billion.
- The public’s holdings of banknotes and coins, previously defined as monetary aggregate M0, amounted to SEK 64 billion. The money supply M3 reached SEK 4,831 billion, with an annual growth rate of -4.0 percent.
Interest Rates on Lending and Deposits:
- The average interest rate on new housing loan agreements for households was 4.19 percent. The average interest rate for variable-rate housing loans was 4.26 percent.
- For households, the average interest rate on new housing loans with fixed terms ranging from 1 to 5 years was 3.87 percent. In May 2022, the same rate was 2.86 percent.
- The average interest rate on new lending agreements to non-financial corporations was 5.10 percent, compared to 1.98 percent in May 2022.
- For households, the average interest rate for new deposits in bank accounts was 1.67 percent in May. The interest rate on accounts with fixed terms or limited free withdrawals was 2.65 percent.
- For non-financial corporations, the average interest rate for new deposits in bank accounts was 1.75 percent. The corresponding rate for accounts with fixed terms or limited free withdrawals was 3.27 percent.
Interest Rates on New Deposits at Banks – Household and Non-Financial Corporations Financial Market Statistics, May 2023
For more detailed statistics and information, please refer to the Financial Market Statistics provided by SCB for May 2023.