The money supply M2, November 2007

At end-November more than half (NOK 718 billion) of the broad monetary aggregate was owned by households. The twelve-month growth at 9.2 per cent was a decrease from 9.3 per cent to the previous month. The growth in household money supply continued to be lower than the growth in gross domestic debt (11.5 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 495 billion at end-November. The twelve-month growth was 22.3 per cent, down from 25.5 per cent to 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 48 per cent of this growth to end-November. 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 (21.3 per cent).

Lower growth for other financial enterprises

The money supply of other financial enterprises (other than state lending institutions, banks and money market funds) contributed to dampen the growth in total money supply. Financial enterprise money supply amounted to NOK 116 billion to end-November. The twelve-month growth for other financial enterprises was 39.0 per cent to November, down from 59.7 per cent to the previous month.

Composition of money supply

The broad monetary aggregate M2 amounted to NOK 1 381billion at end-November, 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.

Revisions

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