Content
Published:
This is an archived release.
High but decreasing loans margin
For the first time since the 3r d quarter of 2008, the average interest rate on loans from Norwegian banks increased in the 4t h quarter of 2009. The loans margin fell to 2.04 per cent, but is still higher than before the financial turmoil started in the 3r d quarter of 2008.
The average interest rate on loans in banks increased from 4.19 per cent by the end of the 3r d quarter to 4.28 per cent by the end of the 4t h quarter of 2009. NIBOR increased from 1.98 to 2.24 per cent in the same period, and as a result the loans margin decreased from 2.21 to 2.04 per cent.
Although the loans margin decreased in the 4t h quarter, the figures indicate that it is still higher than before the financial crisis started in the 3r d quarter of 2008.
The average interest rate on deposits in Norwegian banks increased more than the average interest rate on loans. As a result, the interest rate margin decreased by 0.09 percentage points to 2.4 per cent by the end of 2009.
High but decreasing interest rate margin on loans to non financial corporations
From the 4t h quarter of 2004 to the 3r d quarter of 2008, the interest rate margin was higher on loans to households than on loans to non financial corporations. Figures indicate that this changed after the 3r d quarter of 2008. The interest rate margin on loans to non financial corporations is now higher than on loans to households. This could indicate a change in the banks’ evaluation of risk premium.
Transfer of housing loans from banks to mortgage companies affects the margins
Banks continue to transfer housing loans to mortgage companies. These loans are used as security for purchases of bonds with priority. A lower share of housing loans in banks’ lending portfolio leads to an increase in the average interest rate on loans from banks because interest rates on loans secured by dwellings usually are lower than interest rates on other loans. From the 3r d quarter of 2008 to the 4t h quarter of 2009, the mortgage companies' share of total loans from Norwegian financial institutions has increased from 18.2 to 27.3 per cent.
Low interest rates
The average interest rate on loans in mortgage companies and state lending institutions decreased to historically low levels in the last quarter of 2009. As a result of this, the average interest rate on loans from Norwegian financial institutions only increased by 0.01 percentage points, to 3.89 per cent in the 4t h quarter of 2009. The average interest rate on loans in mortgage companies, insurance companies, state lending institutions and the Norwegian Public Service Pension has never been lower at the end of a year.
| 31.12.2009 | 30.09.2009 | 30.06.2009 | 31.03.2009 | 31.12.2008 | Change | Share of loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Last quarter | Last year | 31.12.2009. Per cent |
30.09.2009. Per cent |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1. Total loans from banks | 4.28 | 4.19 | 4.40 | 5.25 | 7.28 | 0.09 | -3.00 | 63.7 | 64.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2. Total bank deposits | 1.88 | 1.70 | 1.90 | 2.86 | 4.61 | 0.17 | -2.73 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3. Banks' interest rate margin (1-2) | 2.40 | 2.49 | 2.50 | 2.39 | 2.67 | -0.09 | -0.27 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4. Lending rate, mortage companies | 3.32 | 3.35 | 3.62 | 4.41 | 6.45 | -0.03 | -3.13 | 27.3 | 26.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 5. Lending rate, life insurance companies | 3.73 | 3.69 | 3.93 | 4.69 | 5.57 | 0.05 | -1.84 | 1.3 | 1.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 6a. Lending rate, state lending institutions1 | 2.70 | 3.11 | 4.20 | 4.91 | 4.95 | -0.41 | -2.25 | 7.7 | 7.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 6b. Lending rate, state lending institutions exsclusive loans with zero interest rates in the Norwegian State Educational Loan Fund1 | 3.08 | 3.65 | 4.86 | 5.70 | 5.65 | -0.57 | -2.56 | 6.8 | 6.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total loans from financial corporations2 | 3.89 | 3.88 | 4.19 | 5.03 | 6.91 | 0.01 | -3.02 | 100.00 | 100.00 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lending rate, loans from banks and mortgage companies | 3.99 | 3.95 | 4.19 | 5.04 | 7.09 | 0.04 | -3.10 | 90.9 | 91.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 7. The Norwegian Public Service Pension Fund | 2.02 | 2.26 | 3.28 | 5.32 | 6.39 | -0.24 | -4.37 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 8. Nibor (3 md. effective) | 2.24 | 1.98 | 2.00 | 3.05 | 4.09 | 0.26 | -1.85 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Deposits margin (8 - 2) | 0.36 | 0.28 | 0.10 | 0.19 | -0.52 | 0.08 | 0.89 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Loans margin (1 - 8) | 2.04 | 2.21 | 2.40 | 2.20 | 3.19 | -0.17 | -1.15 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Banks. Repayment loans with home mortgages | 3.92 | 3.86 | 4.05 | 4.86 | 7.12 | 0.06 | -3.20 | 28.6 | 29.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Banks. Credit loans with home mortgages | 3.33 | 3.21 | 3.44 | 4.42 | 6.86 | 0.12 | -3.53 | 7.0 | 7.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Banks. Loans margin repayment loans with home mortgages (9 - 8) | 1.68 | 1.87 | 2.05 | 1.82 | 3.03 | -0.19 | -1.35 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Banks. Loans margin on credit loans with home mortgages | 1.09 | 1.23 | 1.44 | 1.38 | 2.77 | -0.13 | -1.68 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mortgage companies. Repayment loans with home mortgages | 3.39 | 3.37 | 3.60 | 4.49 | 6.91 | 0.02 | -3.52 | 13.1 | 12.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mortgage companies Credit loans with home mortgages | 3.11 | 3.07 | 3.32 | 4.27 | 6.72 | 0.04 | -3.61 | 5.6 | 5.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Life insurance companiess. Repayment loans with home mortgages | 3.50 | 3.50 | 3.83 | 4.58 | 5.42 | 0.00 | -1.91 | 0.4 | 0.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| State lending institutions. Repayment loans with home mortgages | 3.36 | 3.54 | 4.25 | 5.06 | 5.09 | -0.17 | -1.72 | 2.8 | 2.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Home mortgages from financial corporations | 3.73 | 3.70 | 3.95 | 4.79 | 6.93 | 0.03 | -3.21 | 44.9 | 44.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Credit lines from financial corporations | 3.23 | 3.15 | 3.40 | 4.37 | 6.82 | 0.08 | -3.58 | 12.6 | 12.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Housing loans total from financial corporations | 3.62 | 3.58 | 3.83 | 4.71 | 6.91 | 0.04 | -3.29 | 57.5 | 57.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Norges bank's sight deposit rate3 | 1.75 | 1.25 | 1.25 | 2.00 | 3.00 | 0.50 | -1.25 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Norges bank's overnight lending rate3 | 2.75 | 2.25 | 2.25 | 3.00 | 4.00 | 0.50 | -1.25 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1 | Weighted average interest rates incl. commissions on NOK loans from banks and other financial corporations. Weighted average interest rates on deposits in banks from non-financial enterprises, households and local government. Weighted average interestmargins in banks. Per cent per annum. |
| 2 | Includes banks, mortgage companies, life insurance companies and state lending institutions. The Norwegian Public Service Pension Fund is not included. |
| 3 | Norges Bank (Central bank of Norway). |
Definitions and other important information
The interest margin : The difference between banks' average lending and deposit rates.
The lending margin : The difference between banks' interest rates on loans and the NIBOR rate.
The interest margin on deposits : The difference between the NIBOR rate and banks' interest rates on deposits. |
Determination of interest rates in state lending institutionsThe floating interest rate on loans from state lending institutions is determined by the interest rate on treasury bills three months before the decisions are made. The interest rate on loans from The Norwegian Public Service Pension Fund follows the official standard rate that is also determined by the interest rates on treasury bills, but with an observation period of two months only. |
Tables
The statistics is now published as Interest rates in banks and mortgage companies.
Contact
-
Statistics Norway's Information Centre
E-mail: informasjon@ssb.no
tel.: (+47) 21 09 46 42