4189_not-searchable
/en/bank-og-finansmarked/statistikker/k2/arkiv
4189
Increased growth in enterprise debt
statistikk
2008-01-04T10:00:00.000Z
Banking and financial markets
en
k2, The credit indicator C2, general public’s gross domestic debt, credit expansion, credit transactions, liabilities, creditFinancial indicators, Banking and financial markets
false

The credit indicator C2, November 2007

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Increased growth in enterprise debt

The twelve-month growth in the credit indicator C2 was 14.7 per cent to end-November, up from 14.0 per cent to end-October. Non-financial enterprises in particular contributed to the increase in the C2 growth.

Credit indicator C2. Percentage change

Non-financial enterprise gross domestic debt was NOK 1 008 billion at end-November. The twelve-month growth was 21.3 per cent, up from 19.1 per cent to end-October. This was the highest twelve month growth since September 2006. The one-month growth was very strong in November, compared with rather weak growth in the previous month. For October and November as a whole, the growth was broadly in line with the total growth for the autumn period. The growth in enterprise money supply fell to 22.3 per cent to end-November according to the M2 statistics ; thus still higher than the growth in enterprise debt. The strong growth in non-financial enterprise gross debt and money supply is related to the continued strong growth in the Norwegian economy.

Continued reduced growth rate in household1 debt

Household gross domestic debt was NOK 1 730 billion at end-November. The twelve-month growth was 11.5 per cent to end-November, down from 11.6 per cent to end-October. Thus the growth rate has fallen in each of the last four months. The average twelve-month growth in household gross domestic debt in the first eleven months of 2007 was 12.0 per cent, compared to an average growth of 13 per cent during 2006. The growth in household gross debt to end-November 2007 is once again higher than the growth in household money supply (9.2 per cent).

Portfolio shifts and IFRS

70 per cent of the general public gross domestic debt of NOK 2 938 billion1 at end-November consists of bank loans. The twelve-month growth in bank loans fell from 15.6 per cent to end-October to 14.6 per cent to end-November. The twelve-month growth in credit from mortgage companies increased from 17.1 per cent to 31.9 per cent due to portfolio transfers from banks. The growth in credit from finance companies fell from 7.3 per cent to 4.0 per cent in the same period. The accounting standard IFRS, which was implemented from March 2007, may also lead to more fluctuations in the data.

Credit indicator C2. Percentage change
  September 2007 October 2007 November 2007
12 mth total 14.3 14.0 14.7
3 mth mov.avg.tot 14.0 13.5  
12 mth households 11.8 11.6 11.5

C2 is an approximate measure of the size of the gross domestic debt of the general public (households, non-financial enterprises and municipalities) in NOK and foreign currency. Statistics Norway also compiles the credit indicator C3, which in addition to C2 (the public’s domestic gross debt) also includes the public’s external loan debt. Most of the public’s external loan debt refers to non-financial enterprises. The C3 statistics are published approximately one month later than the C2. See http://www.ssb.no/english/subjects/11/01/k3_en/

1English version corrected 28th January 2008.