The credit indicator C2, August 2007

Non-financial enterprise gross domestic debt was NOK 966 billion at end-August. The twelve-month growth was 21.1 per cent, up from 20.5 per cent to end-July. The growth rate has thus been higher than 20 per cent since August last year. The growth in enterprise money supply was 26.7 per cent to end-August this year according to the M2 statistics , i.e. it continues to be higher than the growth in enterprise debt. The strong growth in non-financial enterprise gross debt and money supply is related to the strong growth in the Norwegian economy.

Household debt growth fell slightly

Household gross domestic debt was NOK 1 676 billion at end-August. The twelve-month growth was 12.0 per cent to end-August, down from 12.3 per cent to end-July. The average twelve-month growth rate for household gross domestic debt to August this year is lower than the average growth of 13 per cent in 2006. However, the growth in household gross debt to end-August 2007 is still higher than the growth in household money supply (9.2 per cent).

Statistics for credit sources influenced by portfolio shifts and IFRS

About 70 per cent of the general public gross domestic debt of NOK 2 839 billion at end-August consists of bank loans. The twelve-month growth in bank loans increased from 16.4 per cent to end-July to 16.8 per cent to end-August. The twelve-month growth in credit from mortgage companies fell from 18.3 to 15.2 per cent and the twelve-month growth in credit from finance companies increased from 9.6 per cent to 10.1 per cent in the same period. The growth rates of loans from banks, mortgage companies and finance companies are influenced by shifts in loan portfolios among these institutions. Since March 2007, the data have also been affected by the implementation of the international financial reporting standards, IFRS, which may lead to more fluctuations in the data.