Increased growth in domestic loan debt

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The twelve-month growth in the credit indicator C2 was 5.7 per cent to the end of October 2018, up from 5.5 percent the previous month.

Written by: Anne Karin Linderud Haugen

Figure 1. Credit indicator (C2)

General public Households Non-financial corporations Municipalities
Oct. 2015 5.6 6.4 3.7 7.6
Nov. 2015 5.2 5.9 3.2 8.1
Dec. 2015 5.4 6.1 3.5 7.6
Jan. 2016 5.3 6.1 3.5 6.2
Feb. 2016 5.2 6 3.8 5.3
Mar. 2016 4.9 5.8 3.4 5.1
Apr. 2016 5.1 6 3.3 5.7
May 2016 4.8 5.9 2.6 5.7
June 2016 5 6 3 5.4
July 2016 5 5.9 3.3 5.1
Aug. 2016 5 6.1 3 5
Sep. 2016 5.1 6.3 2.6 6.4
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
Oct. 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 6.1 6.6 5.1
Feb. 2018 6.3 6.0 7.4 4.3
Mar. 2018 6.3 5.9 7.5 4.6
Apr. 2018 6.4 5.9 7.8 4.9
May 2018 6.2 5.8 7.0 5.8
June 2018 5.9 5.8 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 5.1 4.8
Oct. 2018 5.7 5.7 5.8 4.7

The general public’s domestic loan debt amounted to NOK 5 673 billion at end-October, Credit indicator statistics.

Decreased debt growth in households

Households’ domestic loan debt totalled NOK 3 434 billion at end-October. The twelve-month growth was 5.7 per cent to end-October, down from 5.8 percent the month before.

Increased debt growth in non-financial corporations

Non-financial corporations domestic loan debt amounted to NOK 1 739 billion at end-October. The twelve-month growth was 5.8 per cent to end-October, up from 5.1 per cent the previous month.

Weaker 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 4 574 billion. The twelve-month growth in loans from banks and mortgage companies was 5.7 per cent, down from 5.8 per cent the previous month.

Increased growth in debt securities

The twelve-month growth in the general public’s debt securities was 4.4 per cent to end-October, up from 4.1 per cent the previous month.

External debt growth fell further in the 3rd quarter of 2018

The general public’s total loan debt (C3) amounted to NOK 6 848 billion at the end of the 3rd quarter of 2018. The external debt constitutes NOK 1 216 billion.

The external loan debt kept on declining to the end of the 3rd quarter. The twelve-month growth in external debt decreased from -11.5 per cent to -12.4 per cent from the end of the 2nd quarter to the end of the 3rd quarter of 2018.

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

Sectoral change of toll road companies

The sectoral classification of The Norwegian toll companies is changed from public incorporated enterprises, owned by local government, to central government. These companies’ loan debt is no longer included in the credit indicator. The change is submitted in September 2018 with statistical effect from January 2018.

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 as of January 2018. The data is edited continuously and will be updated with the next release.

 

 

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