The money supply M2, October 2007

The broad monetary aggregate M2 amounted to NOK 1 387 billion at end-October, 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.

Continued strong growth for households and non-financial enterprises

At end-October more than half (NOK 722 billion) of the broad monetary aggregate was owned by households. The twelve-month growth at 9.4 per cent was an increase from 9.0 per cent in the previous month. The growth in household money supply continued to be lower than the growth in their gross domestic debt (11.6 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 491 billion at end-October. The twelve-month growth was 25.5 per cent, up from 23.4 per cent in the previous month. Since the beginning of 2006, non-financial enterprises have been the main contributor to the annual growth in money supply, accounting for about 47 per cent of this growth at end-October. 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 (19.1 per cent).

Declining growth for other financial enterprises

The money supply of other financial enterprises (other than state lending institutions, banks and money market funds) amounted to NOK 120 billion at end-October. The twelve-month growth for other financial enterprises was 59.7 per cent in October, down from 60.4 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 standard.