4355_not-searchable
/en/bank-og-finansmarked/statistikker/m2/maaned
4355
Reduced growth in money supply
statistikk
2009-09-30T10:00:00.000Z
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 2009

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Reduced growth in money supply

The twelve-month growth in total money supply was 2.1 per cent to end-August, down from 3.3 per cent to end-July. The decrease in the M2 growth came from non-financial enterprises.

Money supply (M2) - growth

The money supply amounted to NOK 1 504 billion at end-August, down from NOK 1 532 billion at end-July.

Declining growth for non-financial enterprise and household money supply

Non-financial enterprise money supply amounted to NOK 504 billion at end-August. The twelve-month growth was -0.8 per cent to end-August, down from 2.4 per cent the previous month. Non-financial enterprise money supply constituted almost 43 per cent of their gross domestic debt measured by the credit indicator C2 at end-August. As recently as in December 2007 this ratio was higher than 50 per cent.

At end-August, more than half (NOK 818 billion) of the broad monetary aggregate was owned by households. The twelve-month growth in household money supply was 5.7 per cent to end-August, down from 5.9 per cent the previous month. The growth in household money supply was lower than the growth in household gross domestic debt, which was 6.4 per cent to end-August, as shown by the credit indicator C2 . For more information on the financial position of households, see the financial accounts in the national accounts .

Increased growth in other financial enterprise money supply

Other financial enterprise money supply (other than state lending institutions, banks and money market funds) amounted to NOK 127 billion at end-August. The twelve-month growth was -7.4 per cent to end-August, up from -9.4 per cent the previous month.

Monetary aggregates, growth (per cent)
  March 2009 April 2009 May 2009 June 2009 July 2009 August 2009
M0 - 12 mth. 39.1 80.6 72.1 59.1  116.1 18.7
M1 - 12 mth. -4.1 -4.5 -1.3 -1.8 -0.5 -1.9
M2 - 12 mth. 3.1 1.9 4.0 3.6 3.3 2.1
M2 - 3 mth. moving average 2.5 3.6 5.2 7.4 4.5  
M2 households - 12 mth. 6.8 6.2 6.2 5.9 5.9 5.7
M2 non-financial enterprises - 12 mth. -0.6 -0.8 2.7 1.6 2.4 -0.8

Strong decline in base money

Base money (see below) amounted to NOK 96 billion at end-August, down from NOK 167 billion at end-July. This decrease is connected to reduced bank deposits in Norges Bank of more than NOK 70 billion during August. The bank deposits amounted to NOK 46 billion at end-August, and this is the lowest level measured since end-September 2008.

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 the money-holding sector i.e. households, non-financial enterprises, municipalities and financial enterprises other than state lending institutions, banks and money market funds.

The base money (M0) is defined as the banks’ and the money-holding sector's (see above) notes and coins and deposits with Norges Bank. Banks’ deposits with Norges Bank comprise current account (sight) deposits and fixed rate (time) deposits (F-deposits), from Norges Bank’s monthly balance sheet.