Financial institutions (discontinued), Q2 2005

Total lending to the public (municipalities, households and non-financial corporations) amounted to NOK 1 932 billion at the end of the second quarter of 2005, of which banks accounted for 72 per cent. The lending institutions' market shares have remained relatively unchanged. Finance and mortgage companies have the second largest market share at 18 per cent.

Falling interest margin

The interest rate margin is defined as the difference between the weighted average interest rates on NOK loans to the public and weighted average interest rates on deposits from the public. Norges Bank reports that the banks' interest rate margin was 2.59 per cent at the end of the second quarter of 2005.

This is a decline of 0.29 percentage points from the same period last year.

The interest rates on loans has fallen by 0.26 percentage points to 3.87 per cent from the second quarter of 2004. The deposit interest rate increased by 0.03 percentage points to 1.28 per cent in the same period.

Increased total assets

Total assets for financial institutions increased by 8.4 per cent to NOK 3 747 billion compared with the corresponding quarter last year. Life insurance companies had the largest increase in total assets by 11.8 per cent to NOK 568 billion. Total assets for commercial and savings banks increased by 9.2 per cent to NOK 2 002 billion.