Financial institutions (discontinued), Q2 2007

The strong growth in the overall lending from the financial institutions, is mainly due to the high growth in the banks’ lending to the public (municipalities, non-financial corporations and households), which increased by 16.7 per cent to NOK 1 973 billion during the last 12 months. The growth is mainly caused by low interest rates, high growth rates in the house prices and high business-sector investments.

Increased stock of securities

The value of investments in securities increased by 1.3 percent to NOK 1 284 billion, during the second quarter of 2007. Furthermore, the twelve-month growth rate was 13.8 per cent at the end of the second quarter of 2007. The value of investments in equities, units and primary capital certificates has increased by 34.3 per cent, while the value of investments in bonds has increased by 7.3 per cent since the end of the second quarter of 2007.

Moreover, the value of investments in certificates fell by 20.7 per cent during the same period. Bonds still have the largest share of the stock of securities by 61.2 per cent, while equities, units and primary capital certificates accounts for 35 per cent.

Increased total assets

Total assets for all financial institutions increased by 17.9 per cent to NOK 5 123 billion, compared with the corresponding quarter last year. The total assets in banks’ increased by 20.8 per cent, while the total assets in insurance companies and finance companies increased by respectively 11.6 per cent and 23.9 per cent during the same period. Total assets indicate the size of the financial institutions. Banks maintain their position as the leading financial institution in Norway, followed by insurance companies and finance companies.