The money supply M2, July 2007

The broad monetary aggregate M2 amounted to NOK 1 366 billion at end-July, of which the major part (about 90 per cent) was bank deposits. In comparison, notes and coins only amounted to 3-4 per cent of the broad money. The rest of the broad money mainly consisted of shares in money market funds (about 6 per cent), while certificates of deposits amounted to less than 1 per cent.

Other non-financial enterprises and households increases

Household money supply amounted to NOK 719 billion at end-July. The twelve-month growth was 8.8 per cent, up from 8.4 per cent in the previous month. The growth in household money supply was still considerably lower than the growth in household gross domestic debt (12.3 per cent), as shown by the credit indicator C2 . For more information on the financial position of households, see the financial accounts in the national accounts

Financial enterprises (other than state lending institutions, banks and money market funds) money supply amounted to NOK 102 billion at end-July. The twelve-month growth was 42.3 per cent, up from 25.1 per cent in the previous month.

Non-financial enterprises and municipalities pull growth down

Non-financial enterprise money supply amounted to NOK 485 billion at end-July. The twelve-month growth was 26.1 per cent, down from 26.3 per cent in the previous month. Since the beginning of 2006, non-financial enterprises have been the main contributor to the total growth in money supply, accounting for about 50 per cent of this growth at end-July. The high growth may be related to the high turnover and profitability in business and industry. As described by the credit indicator C2 , the growth in enterprise gross debt was also high (20.5 per cent).

The municipal sector contributed to dampen the growth in total money supply. Municipalities’ money supply amounted to NOK 60 billion at end-July. The twelve-month growth was 18.5 per cent, down from 19.7 per cent in the previous month.

Revisions

Since March 2007, the figures have been affected by the implementation of the IFRS, the new international financial reporting standards.