4139_not-searchable
/en/bank-og-finansmarked/statistikker/k2/arkiv
4139
Continued decline in debt growth
statistikk
2010-02-01T10:00:00.000Z
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, December 2009

Content

Published:

This is an archived release.

Go to latest release

Continued decline in debt growth

The twelve-month growth in the credit indicator C2 was 4.1 per cent to end-December, down from 4.8 per cent to end-November. Debt growth decreased for municipalities, households and non-financial enterprises.

Credit indicator C2. Percentage change

The general public’s gross domestic debt C2 amounted to NOK 3 406 billion at end-December, down from NOK 3 409 billion at end-November. The debt growth had a sharp decrease in 2009.

Decline in non-financial enterprises’ debt

Non-financial enterprises’ gross domestic debt amounted to NOK 1 160 billion at end-December. The twelve-month growth to end-December was -1.4 per cent, down from -0.3 per cent to the previous month. During 2009, the twelve-month growth decreased by 16.9 percentage points.

The growth based on the three-month moving average (see box) of the non-financial gross debt was -4.7 per cent for the period October-December compared with the previous three months. The fact that the growth based on the three-month moving average is lower than the twelve-month growth could be an indication that the twelve-month growth will continue to fall.

Fall in household debt growth

Household gross domestic debt totalled NOK 1 990 billion at end-December. The twelve-month growth was 6.7 per cent to end-December, down from 7.0 per cent to the previous month.

Credit indicator C2. Percentage change
  July
2009 		August
2009 		September
2009 		October
2009 		November
2009 		December
2009
12 mth. total 6.5 5.9 5.5 5.1 4.8 4.1
3 mth. moving average tot 3.4 3.9 3.4 3.5 2.4  
12 mth. households 6.5 6.4 6.4 6.7 7.0 6.7
12 mth. non-financial enterprises 4.7 3.4 2.4 1.0 -0.3 -1.4

Growth rates affected by the portfolio shifts

Of the general public’s gross domestic debt, 59 per cent consisted of bank loans. The twelve-month growth in bank loans decreased from -5.5 per cent to end-November to -6.3 per cent to end-December. Mortgage companies’ loans amounted to NOK 796 billion and the twelve-month growth went down from 41.1 per cent to 39.4 per cent in the same period. The growth rates are affected by transfers of loans from banks to mortgage companies. This is due to the new legislation on covered bonds. The growth rate for banks and mortgage companies in total was 3.3 per cent to end-December, compared to 4.0 per cent the previous month.

The twelve-month growth rate in bond debt continued to rise from 20.1 per cent to end-November to 22.8 per cent to end-December. This was the highest twelve-month growth since October 2003. The growth rate in certificate debt on the other hand went down from 5.9 per cent to end-November to -2.9 per cent to end-December.

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.

Growth based on the three-month moving average is defined as growth in average outstanding credit (seasonally-adjusted figures) in the latest three-month period in relation to the previous three-month period. The growth is adjusted for exchange rate valuation changes and statistical breaks as an annualised figure. The calculation is centred; in other words, the observation is set at the middle month of the latest three-month period.