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4897
Few choose fixed interest rate loans
statistikk
2007-02-28T10:00:00.000Z
Banking and financial markets
en
orbofur, Loans with fixed interest rates from banks and other financial corporations, lending, fixed-rate loan, fixed-rate periodFinancial institutions and other financial corporations, Banking and financial markets
false

Loans with fixed interest rates from banks and other financial corporations, Q4 2006

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Few choose fixed interest rate loans

Less than five per cent of banks’ lending to households had fixed interest rates at the end of 2006. As a moderate rise in interest rates has occurred lately, an increase in the share of loans with fixed interest rates was expected, but such an increase was not registered in the fourth quarter of 2006.

Banks, Mortgage companies and State lending institutions. Fixed interest loans to Municipalities, Households and Non-Financial Corporations. Q12004-Q42006

Banks. Share of loans to households with fixed interest. Q12004-Q42006

The share of loans with fixed interest to local governments, non-financial corporations and households has declined from about 20 per cent in the first quarter of 2004 to barely 12 per cent at the end of the fourth quarter of 2006.

Households and non-financial corporations reduce use of loans with fixed interest

The share of loans with fixed interest accounted for 8 per cent of total loans to households in the fourth quarter of 2006, a decline from 18 per cent at the end of the first quarter of 2004. The share of loans with fixed interest to non-financial corporations fell from 19 per cent to 12 per cent in the same period. However, non-financial corporations may use other types of hedging instruments, for instance interest rate swaps serving the same purpose as fixed interest rate loans.

Local governments increase use of fixed interest rate loans

After a fall in the share of fixed interest rate loans to local governments from the third quarter of 2004 to barely 40 per cent in the third quarter of 2005, the share of fixed interest rate loans rose moderately to 46 per cent at the end of 2006.