Financial institutions (discontinued), Q1 2001

During 2000 there were a gradual reduction in the lending growth - from 4 per cent in the second quarter to 2 per cent in the fourth quarter. The fact that lending growth is turning, might be connected with the reduction in the interest rate by 0.01 percentage points the first quarter of this year, while there was an increase in the second, third and fourth quarter of 2000 of 0.3, 0.7 and 0.4 percentage points respectively.

Lending to the general public, defined as municipalities, households and non-financial corporations, went up by 3 per cent during this year's first quarter. This means that total lending to the general public amounts to NOK 1 378 billion. The banks, which account for 70 per cent of total lending to the public, increased their lending by 3 per cent in the same period. Insurance companies had an increase of 6 per cent. Finance companies and state lending institutions increased their lending by 3 and 2 per cent.

Increased deposits in banks

The banks have increased their deposits by 7 per cent during the first quarter of 2001 and the deposit now amounts to 934 billion. In the last quarter of 2000 the deposits were reduced by 2 per cent. The increase might be connected with the disturbance in the stock market and the gradual increase in the deposit rate.

Marginally higher interest rate

Preliminary first-quarter figures by Norges Bank show an increase in the interest rate for banks by 0.01 percentage points. This means the average interest rate on loans at the end of March 2001 totalled 8.9 per cent, which is 1.4 percentage points higher than one year before. The deposit rate has gone up 0.04 percentage points to 5.9 per cent, which is 1.4 percentage points higher than at the end of March 2000. The banks interest margin fell by 0.05 percentage points to 3.1 per cent in the first quarter of 2001, which is 0.05 percentage points lower than one year before.

Increase in total assets

Total assets for financial institutions increased by 5 per cent during the first quarter of 2001. The finance companies had the highest growth of 10 per cent. The banks have had an increase of 6 per cent, while both Norges Bank and the insurance companies have had an increase of 4 per cent.

Financial institutions' total assets amounted to NOK 3 271 billion at the end of March 2001. This equals an increase of NOK 536 billion or 20 per cent since the end of March 2000. Norges Bank had the highest growth of 54 per cent. Banks and finance companies increased their total assets by 14 and 17 per cent respectively. State lending institutions increased their total assets by 5 per cent, while insurance companies increased their assets by 3 per cent.

Tables:

• Table 1 Financial institutions. Balance sheet, by financial instruments. 31 March 2001. Million kroner
• Table 2 Financial institutions. Balance sheet, by financial instruments. 31 March 2000. Million kroner