Banks, Estonia, Financial Services, Loan, Markets and Companies

"In the overview of the financial services market we get a more accurate picture of the non-bank creditor market for the first time, complete with service volumes and %ages of market share," said  Andre Nomm, board member of the Financial Supervision Authority.

As at the end of June, 39 companies in Estonia had a creditor's authorization. In addition to them there were 11 companies linked to banks, or credit institutions, active on the market. The applications of 16 more companies were being processed at the time.

The creditors with the biggest loan portfolio have obtained the authorization to operate as a creditor already, the Financial Supervision Authority said.

Of the total loan portfolio 682 mln euros, loans issued by companies linked to credit institutions accounted for 79%, including loans issued by the subsidiaries of major banks for 72%. Swedbank Liising had a market share of 25%, Nordea Finance Estonia of 22% and SEB Liising of 20 %.

The remaining 21% was credit issued by creditors not linked to credit institutions. Their list was topped by Telia Eesti with a market share of 3%, followed by Koduliising and Coop Finants.

Authorized creditors had 403,549 valid contracts with borrowers at the end of June, of which 28% were contracts of companies linked to credit institution. The average size of a loan agreement with a company linked to a credit institution was 4,817 euros and the average size of a loan agreement with other creditors 491 euros, it appears from the overview.

The value of the financial assets held by Estonian resident individuals at the end of the first half of 2016 was 9.7 bln euros and their financial liabilities totaled 8.1 bln euros, which means that the net financial assets of resident individuals amounted to 1.6 bln euros.