Development in domestic loan debt

Published:

The twelve-month growth in the credit indicator C2 was 5.6 per cent to the end of November 2019.

Written by: Heidi Vegsund

The general public’s domestic loan debt amounted to NOK 6 022 billion at end-November, according to new figures from the Credit indicator statistics.

Figure 1. Credit indicator (C2)

General public Households Non-financial corporations Municipalities
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 5.6 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
Nov. 2019 5.6 5.2 5.8 7.8

Debt growth in households

Households’ domestic loan debt totalled NOK 3 619 billion at end-November. The twelve-month growth was 5.2 per cent to end-November.

This year's conversion of student loans to scholarships was moved from November to July. As a result, household debt growth in the period July-October has been at a lower level compared to previous years. We estimate that the twelve-month growth in household debt was 0.2 percentage point lower than it would have been if this change had not happened. Now that we have a seemingly stronger growth rate in November, it is more likely to assume that the growth rate is back at a normal level in November. We estimate that the growth rate is virtually unchanged from last month when we consider the conversion of student loans.

Similarly, the corresponding reduction in twelve-month growth in the general public's domestic loan debt has been 0.1 percentage point in the same period. We can assume that the twelve-month growth in November decreased by about 0.1 percentage point compared to the previous month considering the changed period for conversion of student loans. 

Decreased debt growth in non-financial corporations

Non-financial corporations domestic loan debt amounted to NOK 1 858 billion at end-November. The twelve-month growth was 5.8 per cent to end-November, down from 6.1 per cent the previous month. 

Decreased 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-November. This amounted to NOK 4 880 billion. The twelve-month growth in loans from banks and mortgage companies was 5.6 per cent, down from 5.9 per cent from the previous month. Some of this decline is due to the fact that domestic loan debt was transferred from banks to finance companies. This will affect the transactions and growth rates for these lenders.

Increased growth in debt securities

The twelve-month growth in the general public’s debt securities was 3.8 per cent to end-November, up from 3.2 per cent the previous month.

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