54266_not-searchable
/en/bank-og-finansmarked/statistikker/orbofbm/maaned
54266
Increased deposit-loan ratio
statistikk
2011-09-12T10:00:00.000Z
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, July 2011

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

Content

Published:

This is an archived release.

Go to latest release

Increased deposit-loan ratio

At end-July 2011, the Norwegian banks’ deposit-loan ratio was 78.3 per cent. This represents an increase of 16.3 percentage points over the past 3 years. However, this increase is also related to the portfolio transfers between banks and bank-owned mortgage companies.

Banks finance their operations through different sources of credit, such as deposits, inter-bank loans, bond debt, short-term security loans and loans from the Norwegian Central Bank. Customer deposits are often regarded as the most stable of these financing sources. The deposit-loan ratio is the amount of a bank’s loans divided by the amount of its deposits at any given time.

At end-July 2011, the bank’s total deposits amounted to NOK 1 687 billion. This is an increase of NOK 110 billion, or 7 per cent, compared to the corresponding period last year. Increased deposits from the household sector contributed to the increasing deposit-loan ratio. However, this increasing ratio is also influenced by the transfer of loan portfolios from banks to mortgage companies. The portfolio transfer is an effect of the introduction of covered bonds issued by mortgage companies.

Banks. Loans and deposits, and deposit-loan ratio. July 2006-July 2011

Increased deposits from the household sector

At end-July 2011, the deposit-loan ratio for the household sector was 79.3 per cent, which is an increase of 3.9 percentage points from July 2010. For the period July 2010 to July this year, deposits from the households increased from NOK 819 billion to NOK 876 billion. This represents a 7 per cent growth throughout the past 12 months. During the same period, lending to the household sector increased by 1.7 per cent, from NOK 1 086 billion to NOK 1 104 billion.

Unchanged deposit-loan ratio for corporations

At end-July this year, the deposits from non-financial corporations were NOK 535 billion, which represents a 12-month growth of 6.3 per cent. The deposit-loan ratio in this sector has remained relatively stable at about 60 per cent over the past 12 months. During the last month, the deposit-loan ratio has marginally risen to 60.6 per cent, after a 1.9 percentage point decline in June this year.

Increase in inter-bank loans in July

Norwegian banks’ total inter-bank loans reached NOK 750 billion at end-July 2011; an increase from NOK 686 billion in June. Inter-bank loans constituted 57.1 per cent of the bank’s total market funding in July, which implies a growth of 2.3 percentage points over the last month. A large share of the inter-bank loans stems from foreign banks. In July, loans from foreign banks constituted 92.3 per cent of the total inter-bank loans. Over the last month, inter-bank loans from foreign banks rose by 10 per cent, while the growth in inter-bank loans from domestic banks was only 3 per cent. However, the share of loans in NOK versus foreign currency remains relatively stable. In the last 12 months, inter-bank loans in NOK constitute 45-50 per cent of total loans.

Banks. Different credit sources. Norwegian vs. Foreign sectors. July 2010-July 2011. 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		 Customer
deposits
 
2010                
July 50 553  742 747  251 956  222 027 13 125  121 262 88 821 1 576 320
August 58 448  677 931  254 254  227 000 13 608  123 600 83 821 1 569 029
September 48 781  666 818  257 379  207 652 15 183  101 870 86 819 1 554 285
October 72 515  666 908  257 242  215 529 13 947  105 435 33 805 1 599 465
November 53 638  682 858  258 550  205 153 13 906  114 008 55 447 1 587 482
December 51 723  679 961  255 708  197 135 12 489 92 336 58 674 1 622 635
2011                
January 55 834  710 244  254 551  197 804 11 921  100 199 22 023 1 633 146
February 64 939  659 345  253 197  204 989 11 087  102 043 37 022 1 644 109
March 55 384  684 004  252 601  204 809 9 493  106 422 52 021 1 638 713
April 56 702  641 032  246 577  180 371 9 577  113 000 52 021 1 662 148
May 50 805  711 229  243 750  181 653 8 093  109 179 57 275 1 653 658
June 55 736  629 828  244 967  180 714 9 883  106 863 22 022 1 673 970
July 57 432  692 863  249 344  176 918 10 186  104 622 22 023 1 686 726
 

Covered bonds: bonds conferring a preferential claim over a cover pool consisting of public sector loans and loans secured on residential property or other real property. Only mortgage companies with special authorisation are allowed to issue covered bonds in Norway.

As a large part of Norwegian banks funding is denominated in foreign currency, fluctuations in exchange rates will influence our data.

Tables 

Published tables