Decreased growth in domestic loan debt

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The twelve-month growth in the credit indicator C2 was 5.6 per cent to the end of October 2019, down from 5.8 per cent the previous month.

Written by: Anita Einarsdottir

The general public’s domestic loan debt amounted to NOK 6 004 billion at end-October, according to new figures from the Credit indicator statistics.

Figure 1. Credit indicator (C2)

General public Households Non-financial corporations Municipalities
Oct. 2016 5 6.1 2.7 5.9
Nov. 2016 5.2 6.5 2.7 5
Dec. 2016 4.8 6.3 1.9 5.6
Jan. 2017 5 6.5 2.2 5.8
Feb. 2017 5 6.6 1.8 6.4
Mar. 2017 5.2 6.7 2.2 6.1
Apr. 2017 5.1 6.5 2.3 5.6
May 2017 5.4 6.7 3.1 5.2
June 2017 5.6 6.6 4 5.3
July 2017 5.7 6.6 4.1 5.8
Aug. 2017 5.6 6.5 3.7 6
Sep. 2017 5.8 6.4 4.7 5.3
Okt. 2017 5.7 6.3 4.7 5.4
Nov. 2017 5.8 6.4 4.9 5.3
Dec. 2017 6.4 6.4 6.7 5.3
Jan. 2018 6.2 6.2 6.6 5.1
Feb. 2018 6.3 6.0 7.4 4.3
Mar. 2018 6.3 6.0 7.5 4.6
Apr. 2018 6.4 6.0 7.8 4.9
May 2018 6.2 5.8 7.0 5.8
June 2018 5.9 5.9 6.2 5.4
July 2018 5.8 5.8 6.2 5.0
Aug. 2018 5.9 5.8 6.5 4.8
Sep. 2018 5.5 5.8 5.0 4.8
Oct. 2018 5.8 5.8 6.0 4.7
Nov. 2018 5.7 5.6 6.2 5.3
Dec. 2018 5.6 5.6 5.5 6.6
Jan. 2019 5.8 5.7 5.8 6.4
Feb. 2019 5.8 5.7 5.7 7.3
Mar. 2019 5.9 5.7 5.8 7.6
Apr. 2019 5.8 5.7 5.7 7.0
May 2019 5.7 5.6 5.7 6.8
June 2019 5.8 5.6 5.8 6.8
July 2019 5.6 5.3 5.8 7.0
Aug. 2019 5.5 5.2 5.7 6.9
Sep. 2019 5.8 5.1 7.0 7.0
Oct. 2019 5.6 5.0 6.1 7.6

Decreased debt growth in households

Households’ domestic loan debt totalled NOK 3 610 billion at end-October. The twelve-month growth was 5.0 per cent to end-October, down from 5.1 per cent the previous month.

The period for this year’s conversion of student loans into scholarships is moved from November to July. This causes the debt growth in households to be at a lower level compared to previous years. We estimate that the twelve-month growth in household’s domestic loan debt is 0.2 percentage points lower than it would have been without this change. This applies to periods from July to October 2019. Corresponding reduction in the twelve-month growth in the general public’s domestic loan debt is 0.1 percentage points in the same period.

Decreased debt growth in non-financial corporations

Non-financial corporations domestic loan debt amounted to NOK 1 855 billion at end-October. The twelve-month growth was 6.1 per cent to end-October, down from 7.0 per cent the previous month. 

Unchanged growth in loans from banks and mortgage companies

Of the general public’s domestic loan debt, 81 per cent consisted of loans from banks and mortgage companies at end-October. This amounted to NOK 4 865 billion. The twelve-month growth in loans from banks and mortgage companies was 5.9 per cent, unchanged from the previous month.

Increased growth in debt securities

The twelve-month growth in the general public’s debt securities was 3.2 per cent to end-October, up from 2.5 per cent the previous month. 

Increased external debt in the 3rd quarter of 2019

The general public’s total loan debt (C3) amounted to NOK 7 250 billion at the end of the 3rd quarter of 2019. The external debt constitutes NOK 1 282 billion.

The external loan debt increased to the end of the 3rd quarter. The twelve-month growth in external debt increased from -2.6 per cent to 0.1 per cent from the end of the 2nd quarter to the end of the 3rd quarter of 2019.

The external loan debt mainly relates to non-financial corporations.

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