The money supply M2, April 2007

Both non-financial enterprises and households contributed to the decrease. The annual growth at 16.3 per cent to end-March was the highest money supply growth in more than ten years.

Decreasing growth in non-financial enterprises

Non-financial enterprise money supply amounted to NOK 446 billion at end-April. Twelve-month growth was 31.7 per cent, down from 32.5 per cent in the previous month. The growth is still at a high level. Since the beginning of 2006, non-financial enterprises are the (institutional) sector with the highest contribution to the growth in money supply, representing about 2/3 of this growth at end-April. The high growth may be connected with high turnover and profitability in business and industry. As shown by the credit indicator C2 , the growth in enterprise gross debt was also high (20.4 per cent).

Also growth in households money supply fell

Household money supply amounted to NOK 675 billion at end-April. Twelve-month growth in household money supply decreased from 7.2 per cent to 6.4 per cent in April. The growth in household money supply is still considerably lower than the growth in household gross domestic debt (11.9 per cent), as shown by the the credit indicator C2 . For more information about the financial position of households, see the financial accounts in the national account .

Bank deposits - the dominating component

The broad monetary aggregate M2 amounted to NOK 1 265 billion at end-April. The major part of broad money was bank deposits (above 90 per cent), which also is the sharpest growing component of broad money. In comparison, notes and coin only amounted to 3-4 per cent of broad money. The rest of broad money mainly consists of shares in money market funds (5-6 per cent), while certificates of deposits were less than 1 per cent.

Revisions

In this release, the figures are revised more than usual, due to newer and better systems of securities and mutual funds statistics. In addition, since March 2007, the figures are influenced by the implementation of the new international financial reporting standards, IFRS.