Bank interest rates and lending, Q2 2013 (Summary)

SUMMARY

The upward trend for the margins on new mortgages slowed at the beginning of 2013 and decreased during the second quarter. Both the banks' funding cost and lending rate for new mortgages fell during the quarter. At the same time, both lending to households and corporate lending increased. There have been some signs since the beginning of 2013 that the banks have slightly eased their credit terms for corporations.

Margins on new mortgages rose during 2012. This trend slowed during the first quarter of the year and the margins decreased during the second quarter. The gross margin was 1.21 percentage points during the second quarter, which is a decrease of 0.07 percentage points compared to the previous quarter. The net margin, in which other costs associated with mortgages are also deducted, decreased during the quarter and was 0.57 percentage points. The average three-month rate for mortgages was 2.67during the second quarter.

Lending to Swedish households for housing purposes continued to rise during the second quarter of 2013, and the growth rate was 4.9 per cent at the end of the quarter. This is a slightly higher growth rate than in the first quarter of the year.

Growth in corporate lending was 1.3 per cent at the end of the second quarter, which was slower than in the previous quarter.

The credit terms for non-financial corporations were tightened in 2008 in conjunction with the economic uncertainty. This was evident, for example, in that the rates for corporate lending from banks rose in relation to the general interest rate level. Primarily small corporations had to pay more for their loans. There have been some signs since the beginning of 2013, however, that the banks have slightly eased their credit terms.

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