Decreased growth in domestic loan debt

Published:

The twelve-month growth in the credit indicator C2 was 6.1 per cent to the end of January 2018, down from 6.4 per cent the previous month..

The general public’s domestic loan debt amounted to NOK 5 487 billion at end-January, according to new figures from the Credit indicator statistics.

Figure 1. Credit indicator (C2)

12-month growth
Jan. 2015 5.6
Feb. 5.5
Mar. 5.8
Apr. 5.7
May 5.9
Jun. 5.8
Jul. 5.7
Aug. 5.8
Sep. 5.5
Oct. 5.6
Nov. 5.2
Dec. 5.4
Jan. 2016 5.3
Feb. 5.2
Mar. 4.9
Apr. 5.1
May 4.8
Jun. 5.0
Jul. 5.0
Aug. 5.0
Sep. 5.1
Oct. 5.0
Nov. 5.2
Dec. 4.9
Jan. 2017 5.1
Feb. 5.0
Mar. 5.2
Apr. 5.1
May 5.4
Jun. 5.7
Jul. 5.7
Aug. 5.6
Sep. 5.8
Okt. 5.7
Nov. 5.8
Dec. 6.4
Jan. 2018 6.1

Weaker debt growth in households

Households’ domestic loan debt totalled NOK 3 287 billion at end-January. The twelve-month growth was 6.2 per cent to end-January, down from 6.4 the month before.

Weaker debt growth for non-financial corporations

Non-financial corporations domestic loan debt amounted to NOK 1 715 billion at end-January. The twelve-month growth was 6.4 per cent to end-January, down from 6.7 per cent the previous month.

Weaker growth in loans from banks and mortgage companies

Of the general public’s domestic loan debt, 80 per cent consisted of loans from banks and mortgage companies at end-January. This amounted to NOK 4 400 billion. The twelve-month growth in banks and mortgage companies loans was 6.0 per cent, down from 6.6 per cent the month before.

External debt growth fell further in the 4th quarter 2017

The general public’s total loan debt (C3) amounted to NOK 6 805 billion at the end of the 4th quarter 2017, of which the external debt constitutes NOK 1 336 billion.

The external loan debt kept on declining to the end of the 4th quarter, while the twelve-month growth in external debt increased from -13.4 per cent to -7.4 per cent from the end of the 3rd quarter to the end of the 4th quarter.

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

Adaption to IFRS

Norwegian financial institutions reporting to ORBOF (Reporting of banks, mortgage companies, state lending institutions and finance companies’ accounts to the public authorities) has been adapted to International Accounting Standards (IFRS). The most important impact to the Credit Indicator is a change of measure from net to gross lending. Accrued interests and value changes are taken into account with the underlying financial instrument. In addition, total debt securities are corrected for lenders’ holdings of own debt securities. The calculation of transactions and growth is adjusted for these changes.

There is some uncertainty associated with the quality of data for January 2018. The data is edited continuously and will be updated with the release of February 2018.

 

Updated seasonally adjusted stocks

Seasonally adjusted stocks have been updated for periods as of January 2014.

 

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