The Bank of Finland reported a sharp increase in corporate borrowing during June-August 2026, partly reflecting pension reform that took effect in July and allowed subsidiaries of employee pension institutions to use more leverage in real estate investments. Excluding housing corporations, the corporate loan stock at banks operating in Finland reached EUR 66.3 billion in August, with annual growth accelerating to 7.2% from negative 0.2% a year earlier. Non-financial corporations drew down EUR 11.5 billion of new loans during the three-month period, 33% more than a year earlier. August drawdowns rose 29% to EUR 1.4 billion, while the average rate on new corporate loans increased to 4.39% from 4.07%. Including housing corporations, loans to Finnish non-financial corporations totaled EUR 113.3 billion, of which EUR 47.0 billion was lent to housing corporations. Household credit remained broadly stable. New housing loan drawdowns reached EUR 1.1 billion in August, while the housing loan stock declined 0.3% annually to EUR 105.4 billion. Household deposits totaled EUR 117.8 billion and carried an average interest rate of 0.90%.
2026-09-28Bank of Finland
Bank of Finland reports corporate loan growth accelerating to 7.2%, partly driven by pension reform
The Bank of Finland reported that the corporate loan stock excluding housing corporations grew 7.2% annually to EUR 66.3 billion in August 2026. New corporate borrowing reached EUR 11.5 billion during June-August, up 33% from a year earlier, partly because pension reform expanded leverage options for employee pension institution subsidiaries. The average rate on new corporate loans rose to 4.39%.