Financial institutions (discontinued), Q3 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 16.1 per cent to NOK 2 024 billion during the last 12 months. However, the quarterly growth rate in lending to the public fell by 1.8 percentage points.

Increased stock of securities, but lower growth rates

The value of investments in securities fell by 1.8 percent to NOK 1 261 billion, during the third quarter of 2007, mainly due to the turbulences in the international finance markets. However, the twelve-month growth rate was 4.1 per cent at the end of the third quarter of 2007. The value of investments in equities, units and primary capital certificates has increased by 17.6 per cent, while the value of investments in bonds has been reduced by 1.0 cent since the end of the third quarter of 2007.

Moreover, the value of investments in certificates fell by 8.0 per cent during the same period. Bonds still have the largest share of the stock of securities by 62.2 per cent, while equities, units and primary capital certificates accounts for 33.4 per cent.

Increased total assets, but lower growth rate

Total assets for all financial institutions increased by 14.9 per cent to NOK 5 140 billion, compared with the corresponding quarter last year. However, the quarterly growth rate fell by 4.7 percentage points to 0.3 per cent during the third quarter of 2007. The total assets in banks increased by 0.6 per cent, while the total assets in insurance companies and finance companies increased by respectively 2.4 per cent and 3.9 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.