Households continued to borrow enthusiastically in July
- Demand remained strong for both housing loans and consumption loans
- Businesses increased their short-term borrowing in July
- The average interest rate on new housing loans continued to rise and climbed a little above 2.5%
Households were again active in taking out new loans and leases in July. The 111 million euros of new housing loans was 7% more than was issued in the same month a year earlier. The yearly growth in the portfolio was around 7%, as in previous months. The volume of new car leases was 28% more than a year earlier and the portfolio as a whole increased by 21% over the year. Yearly growth in other loans to households remained fast at 8%.
Businesses increased their short-term borrowing above all in July. Around one third more was taken in short-term loans from domestic banks and lease companies than in the previous July, but long-term borrowing tailed off a little as the same amount was taken as a year earlier. The corporate loan and lease portfolio shrank a little during the month. Borrowing by companies was restrained by their modest levels of investment and quite large reserves offunds.
The average interest rate on new housing loans rose a little in the first half of the year and in July too. With demand from households for loans strong, the average interest rate on housing loans rose to slightly above 2.5%. The average interest rate for long-term loans taken by companies reached 2.7%.
The rapid growth in the economy and in incomes saw strong growth in bank deposits. Corporate deposits decreased in June and July, but were still up 11% on a year earlier. Household deposits were up 9% over the year in July, meaning they grew at about the same rate as in the first half of the year.
 The portfolio of corporate bank loans was smaller than a year ago, as one bank transferred a substantial part of its loans to the portfolio of its foreign parent bank in the autumn. Without that the growth in the corporate loan and lease portfolio would have been around 6-7%.