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Borrowing abroad reached record levels
statistikk
2008-06-06T10:00:00.000Z
Banking and financial markets
en
orbofbm, Financial corporations, balance sheet, banks, mortgage companies, finance companies, state lending institutions, loans, deposits, financing, mortgages, bonds, commercial papers, shares, ownership interest, assets, liabilities, foreign banks, borrowers, balancesFinancial institutions and other financial corporations, Banking and financial markets
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Financial corporations, balance sheet, April 2008

As from 2016 the statistics is published with Banks and mortgage companies.

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Borrowing abroad reached record levels

Figures for April 2008 show a sharp increase in Norwegian banks’ short-term credit sources. The increase was particularly strong for foreign inter-bank and short-term security loans, but the use of domestic bond loans also increased.

Banks. Different credit sources. April 2002 - April 2008.

In spite of higher interest rates on deposits and the current scepticism about investments in the securities market, the figures for March showed a decrease in the deposit/loan ratio. This trend continued for non-financial corporations in April, driven by a continued increase in debt growth (see the credit indicator statistics C2 ). The deposit/loan ratio on loans to non-financial corporations was 62.4 per cent at end-April, down from 63.2 per cent in March. As a consequence of the decreasing deposit/loan ratio, Norwegian banks to an increasing extent depend on alternative credit sources such as inter-bank loans, short-term security loans and bond loans. Figures for April show an increase in inter-bank loans, short-term security loans and bond loans. The increase was particularly strong for foreign inter-bank and short-term security loans, which increased by 9.4 and 5 per cent respectively from March to April. The use of domestic bond loans has also increased significantly.

Banks. Different credit sources. Norwegian vs. Foreign sectors. April 2006-April 2008. NOK million
  Inter-bank loan from Norwegian banks Inter-bank loan from foreign banks Total inter-bank loans Norwegian short-term security loans Foreign short-term security loans Total short-term security loans Norwegian bond loans Foreign bond loans Total bond loans
April 2006 48 153  364 072  412 225 25 292 67 946 93 238  204 360  180 386  384 746
May 2006 49 185  371 883  421 068 27 349 70 304 97 653  205 060  185 291  390 351
June 2006 40 763  392 529  433 292 23 495 57 798 81 293  198 856  219 444  418 300
July 2006 34 887  397 225  432 112 22 178 48 500 70 678  202 866  218 988  421 854
August 2006 31 878  401 969  433 847 22 586 57 985 80 571  205 497  228 387  433 884
September 2006 32 466  406 935  439 401 23 311 74 140 97 451  204 264  243 284  447 548
October 2006 37 298  388 606  425 904 20 999 64 595 85 594  211 499  260 442  471 941
November 2006 38 877  371 445  410 322 22 055 58 769 80 824  218 892  268 520  487 412
December 2006 31 367  403 334  434 701 19 973 55 187 75 160  217 779  265 929  483 708
January 2007 37 067  433 399  470 466 18 173 58 573 76 746  217 928  274 185  492 113
February 2007 37 724  445 884  483 608 17 243 53 712 70 955  219 539  272 258  491 797
March 2007 39 905  512 774  552 679 22 174 53 378 75 552  205 142  290 818  495 960
April 2007 45 677  481 367  527 044 20 545 55 688 76 233  211 163  283 432  494 595
may 2007 56 340  477 306  533 646 20 459 60 873 81 332  204 205  294 476  498 681
June 2007 41 030  497 423  538 453 17 504 51 698 69 202  200 782  289 994  490 776
July 2007 42 046  474 539  516 585 18 129 43 931 62 060  212 919  269 087  482 006
August 2007 50 258  485 040  535 298 25 320 44 436 69 756  215 467  265 181  480 648
September 2007 46 592  519 521  566 113 35 540 51 289 86 829  218 782  250 239  469 021
October 2007 46 439  493 534  539 973 38 288 66 040  104 328  222 227  251 943  474 170
November 2007 56 085  524 719  580 804 42 050 70 736  112 786  223 593  260 580  484 173
December 2007 46 076  525 301  571 377 55 157 80 877  136 034  218 088  257 754  475 842
January 2008 65 227  562 099  627 326 54 297  102 257  156 554  228 213  255 607  483 820
February 2008 54 199  543 580  597 779 49 202  107 552  156 754  229 065  248 058  477 123
March 2008 60 999  543 810  604 809 47 797  104 119  151 916  228 073  260 610  488 683
April 2008 62 827  594 977  657 804 48 732  109 618  158 350  245 528  258 214  503 742

Sharp increase in inter-bank loans

Total inter-bank loans amounted to an unprecedented NOK 658 billion at end-April 2008, of which loans from foreign banks accounted for NOK 595 billion and loans from domestic banks accounted for the remainder. One reason why loans from foreign banks dominate is the fact that several banks operating in Norway are foreign-owned and mainly finance their operations with loans from the parent company. Inter-bank loans from foreign banks increased by NOK 51 billion in April, while inter-bank loans from domestic banks increased by NOK 1.8 billion. The increase in inter-bank loans from foreign banks was 9.4 per cent from March to April. This is the highest growth in a single month since March 2007.

Highest stock ever recorded

From December 2007 to January 2008 there was a sharp increase in Norwegian banks’ short-term security loans, largely due to the increasing turbulence in the international financial markets. This growth continued in January and February, but came to a halt in March. The figures increased again in April, leading to the highest stock of short-term security loans ever recorded. Norwegian banks’ stock of short-term security loans amounted to NOK 158 billion, an increase of NOK 6.4 billion from March and NOK 82 billion from April last year. The increase was mainly due to foreign short-term security loans, which increased by NOK 5.5 billion, or 5 per cent, from March 2008. At end-April 2008, foreign and domestic short-term security loans amounted to NOK 110 billion and NOK 49 billion respectively.

Increase in bond debt

Norwegian banks’ bond debt (stock of ordinary bearer bonds which are not included in own funds) amounted to NOK 504 billion at end-April 2008. This is an increase of NOK 15 billion from last month. The increase was due to an 8 per cent increase in Norwegian bond loans in April 2008. This is the highest monthly growth since July 2002. Norwegian bond loans amounted to NOK 246 billion at end-April. Foreign bond loans amounted to NOK 258 billon, a NOK 2.4 billion decrease from March 2008.