Swedish household borrowing rate remains unchanged
Thursday, 26 September 2013
Swedish household loans from banks and mortgage lenders in August amounted to Skr2850 billion, latest official data from Statistics Sweden show. This corresponds to a growth rate of 4.5 percent - just 0.3 percent more than last year at the same time.
In a press release Statistic Sweden (SCB) writes that Loans from Monetary Financial Institutions (MFIs) to households increased at an annual rate of 4.8 percent in August.
This means that the growth rate remains unchanged compared to July. In August 2012 the growth rate was 4.5 percent. MFIs include banks and housing credit institutions among others.
Households' borrowing from MFIs in August amounted to Skr2 850 billion. This is an increase of Skr 126 billion compared to the corresponding month last year. Most of the increase can be explained by housing loans, which accounted for Skr 111 billion of the increase and had an annual growth rate of 5.1 percent in August. Housing loans are loans to households with single-family dwellings, condominiums and tenant-owned apartments as collateral.
Outstanding housing loans to households at MFIs amounted to 2 297 billion in August. The remaining part of household lending consists of, among other things, loans for consumption that often lack collateral and other loans where, for example, agricultural buildings comprise the collateral. In August, household loans for consumption amounted to Skr 171 billion and had an annual growth rate of 4.6 percent.
Lending by MFIs to non-financial corporations amounted to Skr 1 885 billion and grew at an annual rate of 1.9 percent. This represents an increase in the growth rate compared to July when it was 1.4 percent. In August 2012 the growth rate was 2.8 percent. Most of the loans to non-financial corporations comprised loans with multidwelling buildings as collateral. In August, these loans amounted to Skr 578 billion. Loans to tenant-owner associations amounted to Skr 344 billion.
News source: Statistic Sweden