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/en/bank-og-finansmarked/statistikker/m2/maaned
4403
Record growth in money supply
statistikk
2007-10-01T10:00:00.000Z
Banking and financial markets
en
m2, The money supply M2, money, notes and coins, assetsFinancial indicators, Banking and financial markets
false

The money supply M2, August 2007

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Record growth in money supply

The twelve-month growth in money supply (M2) was 17.3 per cent to end-August, up from 16.9 per cent in the previous month. This is the highest annual growth since the data series began. The previous peak was 17.1 per cent in March this year.

The broad monetary aggregate M2 amounted to NOK 1 359 billion at end-August, of which the major part (about 90 per cent) consisted of bank deposits. In comparison, notes and coins only accounted for 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 accounted for less than 1 per cent.

Money supply (M2) - growth

Increase in households and non-financial enterprise money supply

At end-August more than half (NOK 716 billion) of the broad monetary aggregate was own by households. The twelve-month growth was 9.2 per cent, up from 8.9 per cent in the previous month. The growth in household money supply continued to be considerably lower than the growth in gross domestic debt (12.0 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

Non-financial enterprise money supply amounted to NOK 486 billion at end-August. The twelve-month growth was 26.7 per cent, up from 25.6 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-August. The strong growth may be related to the rise in production and profitability in business and industry. As described by the credit indicator C2 , the growth in enterprise gross debt was also high (21.0 per cent).

Decrease for other financial enterprises

Other financial enterprise money supply (other than state lending institutions, banks and money market funds) amounted to about NOK 102 billion at end-August. The twelve-month growth was 40.3 per cent, down from 44.3 per cent in the previous month. The strong growth may be related to the high turnover and profitability in business and industry.

Monetary aggregates, growth (per cent)
      June 2007     July 2007     August 2007
M0 - 12 mth -0.7 9.9 2.8
M1 - 12 mth 17.2 18.6 17.1
M2 - 12 mth 15.7 16.9 17.3
M2 - 3 mth mov.avg.    16.2 16.1  

Revisions

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

The money supply (broad monetary aggregate) M2 consists of notes and coins, unrestricted bank deposits, certificates of deposit and units in money market funds owned by households, non-financial enterprises, municipalities and financial enterprises other than state lending institutions, banks and money market funds.