Financial institutions (discontinued), Q2 2000

Loans to the general public, defined as municipalities, households and non-financial corporations, went up 4 per cent in the second quarter this year. This means that total lending to the general public amounts to more than NOK 1 270 billion. Banks showed the greatest lending growth of 5 per cent. Finance companies had an increase of 3 per cent, while insurance companies continued reducing their lending growth.

Lending to the general public went up 11 per cent from the end of second quarter 1999 to the end of second quarter 2000, or by more than NOK 130 billion. Finance companies had the greatest lending growth, with 35 per cent. Bank lending also surged, by 14 per cent. State lending institutions and insurance companies showed a decline of 11 and 17 per cent, respectively. The strong growth noted by finance companies and decrease for state lending institutions are largely a result of the fact that a state lending institution was converted into a mortgage company, which was thus included in the mortgage-company lending figures as of the first quarter this year.

More loans with mortgage on dwelling

For financial institutions, loans with mortgage on dwelling went up 3 per cent in the second quarter of 2000 - the same increase as in the first quarter this year. This means a total of NOK 561 billion in loans with mortgage on dwelling. The banks comprised 83 per cent of the financial institutions' total loans with mortgage on dwelling and they had the greatest increase, which was 4 per cent. Corresponding figures for finance companies and state lending institutions are 4 and 1 per cent, respectively, while insurance companies had a reduction of 3 per cent.

There was a 12 per cent growth in loans with mortgage on dwelling from the second quarter of 1999 to the second quarter of 2000. Bank loans with mortgage on dwelling went up 16 per cent, while corresponding loans by finance companies and insurance companies fell by 38 and 23 per cent, respectively. State lending institutions have increased their housing loans by 6 per cent.

Greater total assets

Financial institutions' total assets amounted to more than NOK 2 803 billion at the end of the second quarter of 2000, up 3 per cent from the previous quarter. Central Bank of Norway had the greatest growth of 9 per cent. Banks and finance companies have increased their total assets by 2 per cent each. The other institutions showed only marginal changes.

The total assets of financial institutions rose by 19 per cent from second quarter 1999 to second quarter 2000. Compared with the same period last year, total assets went up by NOK 443 billion. Central Bank of Norway and finance companies had the greatest increase: 55 and 33 per cent, respectively. State lending institutions showed a 13 per cent decline, while banks and insurance companies had an increase of 12 and 13 per cent, respectively.

Higher interest rate

Preliminary second-quarter figures by Central Bank of Norway show a slight increase in the interest rate for banks of 0.3 percentage point. This means the lending rate at the end of June was 7.8 per cent. The lending rate is 0.4 percentage point lower than one year before. The deposit rate has gone up 0.2 percentage point to 4.6 per cent, which is 0.2 percentage point lower than at the end of the second quarter of 1999. The banks' interest margin rose by 0.1 percentage point to 3.2 per cent in the second quarter of 2000, which is 0.2 percentage point lower than one year before.

Tables:

• Tabell 1 Financial institutions. Balance sheet by financial instruments. 30 June 2000. Billion kroner
• Tabell 2 Financial institutions. Balance sheet by financial instruments. 30 June 1999. Billion kroner