Financial institutions (discontinued), Q1 2003

Lending to the public (municipalities, households and non-financial corporations) was NOK 1,604 billion at the end of the first quarter of 2002. Banks had a portion of 70 per cent of the loans to the public and increased their lending by 6.8 per cent. The second largest lender was finance and mortgage companies with a portion of 17 per cent. Their growth of lending to the public was 11.2 per cent compared with the 1^{s t} quarter of 2002.

Lower interest margin

The difference between the weighted average interest rates on NOK loans to the public and weighted average interest rates on deposits from the public is the banks interest margin. Norges Bank (The Central Bank of Norway) reports that the banks interest margin was 2.95 per cent at the end of the 1^{s t} quarter of 2003. This is 0.06 percentage points lower than a year ago. The interest rate on loans from commercial and saving banks declined by 0.57 percentage points from the first quarter of 2002, to 7.74 per cent. Interest rate on deposits went down by 0.51 percentage points to 4,89 per cent during the corresponding period.

Increased total assets

Total assets for the financial institutions amounted to NOK 3 988 billion at the end of the first quarter of 2003. This is 11.2 per cent higher compared with the 1^{s t} quarter 2002. Norges Bank had the largest increase by 22 per cent, to NOK 1 222 billion. Commercial and saving banks total assets increased by 8.5 per cent to NOK 1 637 billion.