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4507
Marked fall in guaranteed savings
statistikk
2008-07-04T10:00:00.000Z
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
false

Financial corporations, balance sheet, May 2008

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

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Marked fall in guaranteed savings

Both investments in guaranteed savings and loans to finance such investments have fallen markedly since 1 March 2008, when changes in the regulation concerning sales of guaranteed savings products entered into force.

Banks. 'Guaranteed' index-linked bonds and deposits with index-linked yield, and loans to finance these products. January 2006 - May 2008

Among other things, the changes to the regulation imply that those who offer guaranteed savings products are obliged to investigate whether the products are suitable for the customer. This includes collecting information on the customer’s knowledge and experience with guaranteed savings products and the customer’s financial situation. In connection with the changes, the Financial Supervisory Authority of Norway also advised banks against offering loans to finance investments in guaranteed savings.

Sharp decrease in both investments and loans

From 1 March 2008 to end-May 2008, investments in guaranteed savings products have decreased by almost NOK 6 billion, or 15 per cent. Investments in guaranteed savings products amounted to NOK 32 billion at end-May 2008. Compared to May 2007 investments have decreased by close to NOK 13 billion, or 29 per cent. This is the highest yearly decrease ever recorded.

Loans to finance investments in guaranteed savings follow the same trend as investments in guaranteed savings. At end-May 2008, such loans amounted to NOK 24 billion, a decrease of almost NOK 4 billion, or 14 per cent from March 2008. Compared to May 2007 loans to finance investments in guaranteed savings products have decreased by close to NOK 9 billion, or a total of 27 per cent.

Banks. "Guaranteed" index-linked bonds and deposits with index-linked yield, loans to finance these products, and loan financing shares. Januar 2007-May 2008
Month Deposits with
index-linked yield 		Index-linked
bonds 		     Total Loans to finance Loan financing share
Deposits with
index-linked yield 		Index-linked
bonds 		     Total      Total Deposits with
index-linked yield 		Index-linked
bonds1
2007:01 30 066 13 112 43 178 16 213 15 935 32 148 74 54  122
2007:02 30 572 13 267 43 839 16 809 15 870 32 679 75 55  120
2007:03 31 317 12 741 44 058 17 410 15 512 32 922 75 56  122
2007:04 32 082 12 382 44 464 17 715 15 063 32 778 74 55  122
2007:05 32 606 11 541 44 147 18 678 14 441 33 119 75 57  125
2007:06 30 965 11 212 42 177 17 475 14 313 31 788 75 56  128
2007:07 30 912 10 882 41 794 18 270 14 125 32 395 78 59  130
2007:08 30 692 10 934 41 626 18 183 14 024 32 207 77 59  128
2007:09 30 033 8 986 39 019 18 303 13 725 32 028 82 61  153
2007:10 27 884 8 277 36 161 17 098 13 030 30 128 83 61  157
2007:11 29 249 7 751 37 000 18 001 12 771 30 772 83 62  165
2007:12 29 968 7 412 37 380 19 477 11 107 30 584 82 65  150
2008:01 29 271 7 446 36 717 18 769 10 704 29 473 80 64  144
2008:02 30 395 7 495 37 890 18 837 10 420 29 257 77 62  139
2008:03 29 776 7 256 37 032 18 547 9 682 28 229 76 62  133
2008:04 26 316 6 624 32 940 16 183 8 889 25 072 76 61  134
2008:05 25 297 6 105 31 402 15 692 8 543 24 235 77 62  140
1  Only Norwegian banks are included. For the index-linked loans, the part financed by loans exceeds 100 %. The reason for this is that
foreign-owned (subsidiary or branch) banks in Norway give loans to finance index-linked bonds offered by other parts of the corporation.
This may be the case for Nordea (subsidiary of foreign-owned bank) or Fokus and Handelsbanken (branches of foreign-owned banks.

Investments in index-linked bonds have decreased by almost 50 per cent

Investments in index-linked bonds amounted to NOK 6 billion at end-May 2008, a decrease of close to 16 per cent from March 2008. Compared to May 2007 investments in index-linked bonds have decreased by NOK 5.4 billion, or a total of 47 per cent.

Deposits with index-linked yield amounted to NOK 25 billion at end-May 2008. This is a decrease of 15 per cent from March 2008. Compared to May 2007 deposits with index-linked yield have decreased by NOK 7.3 billion, or 22.4 per cent.

High share of loan financing

Loans to finance deposits with index-linked yield have fallen by 15 per cent since March, the same as the decrease from May 2007. At end-May 2008 loans to finance deposits with index-linked yield amounted to NOK 16 billion. Loans to finance index-linked bonds amounted to NOK 8.5 billion at end-May 2008. This is a decrease of close to 12 per cent from March 2008. Compared to May 2007 loans to finance index-linked bonds have decreased by a total of 41 per cent. Despite the sharp decrease in loans to finance investments in guaranteed savings products, the share of loan financing of such investments is still high. At end-May 2008 the share was 77 per cent.

What are guaranteed savings?

Banks offer a wide variety of so-called guaranteed savings or structured products. The main types are deposits with index-linked yield and index-linked bonds. The yield of the products is fully or partly linked to an index - often a share index listed on the stock exchange. The customer is usually guaranteed the nominal value of the investment and a yield linked to the index if the index has a positive development. Investments in such products are often financed by loans.