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/en/bank-og-finansmarked/statistikker/k2/arkiv
4121
Still increasing debt growth
statistikk
2010-11-01T10:00:00.000Z
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, September 2010

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Still increasing debt growth

The twelve-month growth in the credit indicator C2 was 5.1 per cent to end-September, up from 5.0 per cent to end-August. All sectors contributed to the increase.

The article and the figures were corrected 4 November 2010.

The general public’s gross domestic debt C2 amounted to NOK 3 557 billion at end-September, up from NOK 3 549 billon at end-August.

Continued rise in debt growth for non-financial enterprises

Non-financial enterprises’ gross domestic debt amounted to NOK 1 194 billion at end-September. The twelve-month growth was 1.3 per cent to end-September, up from 1.2 per cent to the previous month.

The growth based on the three-month moving average of the non-financial gross debt was 5.6 per cent for the period July-September compared with the previous three months. The fact that the growth based on the three-month moving average is higher than the twelve-month growth could be an indication that the twelve-month growth will rise.

The rise in non-financial enterprises’ debt growth can imply that non-financial enterprises’ have increased their loan demands. At the same time the improved liquidity supply for the financial corporations makes the credit suppliers better equipped to handle the increased demand.

Credit indicator C2. Percentage change

Stable increase in household debt growth

Household gross domestic debt totalled NOK 2 083 billion at end-September. The twelve-month growth was 6.3 per cent to end-September, up from 6.2 per cent to the previous month.

Credit indicator C2. Percentage change
 
  April 2010 May 2010 June 2010 July 2010 Aug. 2010 Sep. 2010
 
12 mth. total 4.0 4.2 4.7 4.7 5.0 5.1
3 mth. moving average tot 6.0 5.9 6.5 7.0 6.7  
12 mth. households 6.3 6.4 6.2 6.1 6.2 6.3
12 mth. non-financial enterprises -1.5 -1.1 0.5 0.6 1.2 1.3
 

Growth rates are affected by portfolio shifts

Of the general public’s gross domestic debt, 55 per cent consisted of bank loans. The twelve-month growth in bank loans increased from -4.7 per cent to end-August to -3.7 per cent to end-September. Mortgage companies’ loans amounted to NOK 981 billion and the twelve-month growth went down from 33.2 per cent to 29.6 per cent in the same period. The growth rates are affected by transfers of loans from banks to mortgage companies. The growth rate for banks and mortgage companies in total was 5.4 per cent to end-September, up from 5.3 per cent to end-August.

The twelve-month growth rate in bond debt increased from 3.9 per cent to 4.5 per cent during September. The twelve-month growth rate in certificate debt was -17.8 per cent to end-September, unchanged to the previous month.

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 is 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.

 

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