Increased growth in domestic loan debt

Published:

The twelve-month growth in the credit indicator C2 was 6.3 per cent to the end of February 2018, up from 6.2 per cent the previous month.

Written by: Anne Karin Linderud Haugen / Eirin Ingvaldsen Brynestad

The general public’s domestic loan debt amounted to NOK 5 519 billion at end-February, according to new figures from the Credit indicator statistics.

Figure 1. Credit indicator (C2)

12-month growth
Feb. 2015 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. 5.3
Feb. 2016 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. 5.1
Feb. 2017 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. 6.2
Feb. 2018 6.3

Weaker debt growth in households

Households’ domestic loan debt totalled NOK 3 294 billion at end-February. The twelve-month growth was 6.0 per cent to end-February, down from 6.2 the month before.

Increased debt growth for non-financial corporations

Non-financial corporations domestic loan debt amounted to NOK 1 738 billion at end-February. The twelve-month growth was 7.3 per cent to end-February, up from 6.5 per cent the previous month.

Increased 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-February. This amounted to NOK 4 426 billion. The twelve-month growth in banks and mortgage companies loans was 6.1 per cent, up from 6.0 per cent the month before.

Weaker growth in debt securities

The twelve-month growth in the general public’s debt securities was 12.8 per cent to end-February, down from 13.2 per cent the previous month.

 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 and February 2018. The data is edited continuously and will be updated with the release of March 2018.

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