Bank of Lithuania : Lithuania’s credit institutions granted more loans to Lithuanian residents

2020-09-25

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Balance Sheet and Interest Rates of Monetary Financial Institutions, August 2020

Today, the Bank of Lithuania published the monetary financial institution (MFI) balance sheet and interest rate data for August 2020, which show that:

loans granted by credit institutions to Lithuanian residents, having dropped over five months, increased¹ by €109.0 million over the month, to €20.0 billion. Loans to Lithuanian households², non-financial corporations and the financial sector³ grew by €49.3 million, €35.5 million and €25.1 million respectively, while loans to general government reduced by €0.8 million. At the end of the month, loans to these sectors amounted to €10.8 billion, €7.8 billion, €1.1 billion and €330.5 million respectively (see Chart 1);

loans for house purchase and consumption granted by credit institutions to Lithuanian households grew by €48.9 million and €0.5 million respectively, while loans for other purposes decreased by €0.1 million - to €8.8 billion, €743.1 million and €1.2 billion respectively (see Chart 2);

Deposits of Lithuanian residents with credit institutions rose by €682.4 million over the month, while over the last 12 months - €5.4 billion (to €28.3 billion at the end the month). Non-financial corporation, household and general government deposits increased by €373.5 million, €233.1 million and €86.5 million respectively, while financial sector deposits reduced by €10.6 million. Deposits from these sectors amounted to €8.0 billion, €16.3 billion, €3.2 million and €711.3 million respectively (see Chart 3);

overnight deposits from Lithuanian non-financial corporations and households with credit institutions increased by €346.6 million and €240.2 million respectively over the month, to €7.7 billion and €12.5 billion respectively;

interest rates⁴ on new business⁵ loans granted to households by credit institutions fell by 0.09 percentage point over the month (to 3.76%). Interest rates on loans for consumption and house purchase decreased by 0.47 and 0.08 percentage point respectively, while interest rates on loans for other purposes increased by 0.10 percentage point. In August 2020, interest rates on these loans stood at 8.42%, 2.32% and 5.62% respectively (see Chart 4).

Chart 1. Loans granted by other MFIs to Lithuanian residents, excluding MFIs (outstanding amounts, end-of-period)

Chart 2. Loans granted by other MFIs to Lithuanian households (outstanding amounts, end-of-period)

Chart 3. Deposits of Lithuanian residents, excluding MFIs, with other MFIs (outstanding amounts, end-of-period)

Chart 4. Interest rates on new business of loans for households (percentages per annum)

Detailed data on MFI assets and liabilities is available on the Bank of Lithuania website under MFI balance sheet and monetary statistics.

Detailed data on MFI interest rates is available on the Bank of Lithuania website under MFI interest rate statistics.

¹ Unless otherwise specified, monthly changes in euro are presented as transactions, i.e. they are calculated by taking the difference between end-of-month outstanding amounts and then removing the effects of revaluation adjustments, exchange rate adjustments, loan write-offs and reclassifications.

² The household sector consists of households and non-profit institutions serving households.

³ The financial sector consists of Lithuania's investment funds and other financial intermediaries, as well as insurance undertakings and pension funds.

⁴ Weighted interest rates on new business during the reporting month, in percentages per annum.

⁵ New business covers financial contracts that specify for the first time the interest rate on a loan, and renegotiations of existing loan contracts. New business does not cover revolving loans and overdrafts, as well as credit card debt.

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Statistics, Monetary and financial statistics