The money supply M2, December 2007

The main contributor to the high growth in money supply was “other financial enterprises”. The money supply of these enterprises amounted to NOK 131 billion at end-December. The twelve-month growth was a strong 48.3 per cent, up from 39.0 per cent to the previous month.

Higher growth in household money supply

At end-December more than half (NOK 731 billion) of the broad monetary aggregate was owned by households. The 10.4 per cent twelve-month was an increase from 9.2 per cent to the previous month. The growth in household money supply continued to be lower than the growth in gross domestic debt (11.3 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 .

Lower growth in non-financial enterprise money supply

Non-financial enterprise money supply amounted to NOK 518 billion at end-December. The twelve-month growth was 21.2 per cent, down from 22.3 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 44 per cent of this growth to end-December. 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 (21.6 per cent).

Composition of money supply

The broad monetary aggregate M2 amounted to NOK 1 437 billion at end-December, of which the major part (89 per cent) consisted of bank deposits. In comparison, notes and coins only accounted for 3 per cent of the broad money. The rest of the broad money mainly consisted of shares in money market funds (6 per cent), while certificates of deposits accounted for 2 per cent.

Revisions

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