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4547
High funding from foreign sources
statistikk
2011-01-10T10:00:00.000Z
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, November 2010

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

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High funding from foreign sources

Foreign funding sources still constitute a considerable part of Norwegian banks’ funding in the money market. At end-November the share of foreign funding in the market was more than 70 per cent. At the same time, the banks’ bond debt in Norway was higher than before.

Banks finance their operations from different sources, such as deposits, inter-bank loans, bond loans, short-term security loans and loans from Norges Bank. Customer deposits are often the safest, least expensive and most stable of these sources, and amounted to NOK 1 587 billion at end-November 2010. This is more than half of the total funding. The rest of the funding sources comes from the market and amounted to NOK 1 384 billion for the same period.

Most of the funding from the market stems from foreign sources

The banks’ short-term security loans, bond loans and inter-bank loans from foreign sources constituted 72.4 per cent of the total funding from the market at end-November 2010. This share has fallen somewhat during the past two years, but is still at a high level. Because of the high level, the Norwegian banks are directly affected by the situation in the international credit markets.

Higher share of Norwegian bond debt

Bond loans are an important long-term funding source for the banks, and amounted to NOK 464 billion at end-November. The twelve-month growth was -5.6 per cent to end-November, down from

-3.3 per cent last month. Despite the decrease, these two months have the highest growth since August 2009.

Bond debt to Norwegian sectors amounted to NOK 259 billion, or 55.8 per cent, of the total bond debt at end-November. This is the highest share since May 2003. The twelve-month growth for the banks’ Norwegian bond debt was 2.2 per cent at end-November, ergo considerably higher than the joint twelve-month growth for Norwegian and foreign bond loans.

Decreasing inter-bank loans

Total inter-bank loans amounted to NOK 736 billion at end-November, and are thereby the biggest source of funding from the market. The twelve-month growth for the same period was -9.7 per cent.

Inter-bank loans from the Norwegian market amounted to NOK 53 billion at end-November 2010. This equals 7.2 per cent of the total inter-bank loans, unchanged from the situation a year ago.

Low share of short-term security loans from Norwegian sectors

The banks’ short-term security loans were NOK 128 billion at end-November 2010. The twelve-month growth is thus 18.3 per cent.

Short-term security debt to Norwegian sectors accounted for 10.9 per cent of total short-term security debt at end-November. This amounts to NOK 14 billion. During the past year there have been some fluctuations in the Norwegian share of the short-term security loans, but compared with November 2009 this share is unchanged.

Fluctuations in F-loans from Norges Bank

F-loans amounted to NOK 55 billion at end-November, and this is 4.0 per cent of banks’ total market funding. This share has fluctuated between 2.4 and 8.6 per cent for the past two years.

Banks. Different funding sources. November 2005-November 2010. NOK million

Banks. Different credit sources. Norwegian vs. Foreign sectors. November 2008-November 2010. NOK million
 
  Inter-bank loans
from Norwegian
banks		 Inter-bank loans
from foreign
banks		 Norwegian
bond loans		 Foreign bond
loans		 Norwegian
short-term
security loans		 Foreign
short-term
security loans		 F-loans
from
Norges Bank
 
November 2010 53 236  683 058  259 315  205 153 13 906  114 008 55 447
October 2010 70 945  668 478  257 242  215 529 13 947  105 435 32 805
September 2010 48 781  666 818  257 379  207 652 15 183  101 870 86 819
August 2010 52 829  683 550  254 254  227 000 13 608  123 600 83 821
July 2010 50 553  742 747  251 956  222 027 13 125  121 262 88 821
June 2010 55 961  802 724  251 222  225 378 13 009  126 627 96 820
May 2010 46 267  808 373  250 176  215 944 12 306 98 471  134 146
April 2010 52 958  781 105  254 002  212 204 12 166 92 254 83 807
March 2010 53 439  771 831  257 994  213 701 11 715 94 241 48 820
February 2010 53 983  777 348  251 282  215 051 10 257 86 054 43 772
January 2010 49 280  776 195  253 000  220 462 10 783 74 408 33 823
December 2009 44 100  764 294  254 928  231 629 10 914 89 647 73 243
November 2009 58 321  757 341  253 618  238 259 11 825 96 286 47 255
October 2009 55 765  743 320  253 355  235 328 12 260 85 740 33 802
September 2009 64 033  732 595  254 921  259 328 14 413 87 826 50 816
August 2009 70 053  717 573  258 775  263 447 18 642 90 913 32 818
July 2009 63 824  727 227  256 277  270 896 20 518  104 176 59 581
June 2009 65 164  705 071  254 420  281 704 20 549  100 016 72 591
May 2009 65 225  746 034  255 463  290 697 23 469  100 702 72 782
April 2009 53 817  763 992  252 603  273 011 23 412  112 779 99 784
March 2009 58 545  752 253  252 520  282 415 23 951  112 409 77 847
February 2009 61 534  768 451  251 167  291 488 27 235  121 860 70 797
January 2009 57 468  762 763  259 072  289 200 35 183  130 149 60 962
December 2008 45 229  767 550  257 931  331 543 36 540  130 444 82 912
November 2008 64 510  799 635  256 643  310 289 40 715  102 011 76 259
 

F-loans from Norges Bank are a part of the liquidity supply to the banks, and these are loans with collateral in securities at a fixed exchange rate and given terms. The terms for these loans have normally been under a week, but due to the turbulence in the financial markets, Norges Bank enabled loans of up to two years.

As a large part of the foreign funding is in foreign currency, changes in exchange rates may therefore influence the figures.

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