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54274
Still rising interest rates on deposits
statistikk
2011-05-13T10:00:00.000Z
Banking and financial markets
en
orbofrent, Interest rates in banks and other financial enterprises, interest rates, interest on loans, deposit rates, interest margins, banks, mortgage companies, state lending institutions, life insurance companies, Norwegian Public Service Pension FundFinancial institutions and other financial corporations, Banking and financial markets
false

Interest rates in banks and other financial enterprises, Q1 2011

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Still rising interest rates on deposits

In the first quarter of 2011 the interest rate on loans from financial corporations to households fell contrary to an increase in the interest rate on loans to non-financial enterprises. The banks’ deposit rate continued rising while the interest margin fell.

Interest rates on loans from financial corporations. Sector. Q1 2009-Q1 2011

Banks. Interest rates on total loans, deposits and interest rate margin. Q1 2009-Q1 2011

The average interest rate on loans from banks increased by only 0.01 percentage point to 4.62 per cent, while the interest rate on deposits increased by 0.04 to 2.26 per cent in the first quarter of 2011. Hence the interest margin fell by 0.03 percentage points to 2.36 per cent.

The interest rate on loans from mortgage companies fell by 0.02 percentage points, while the interest rates on loans from state lending institutions (exclusive loans with zero interest rates in the Norwegian State Educational Loan Fund) fell by 0.03 percentage points.

The interest rate on “total loans from financial corporations” (banks, mortgage companies, life insurance companies and state lending institutions) fell by 0.02 percentage points in the first quarter of 2011. The interest rate on loans to households fell by 0.05 percentage points, while the interest rate on loans to non-financial private enterprises increased by 0.05 percentage points. The interest rate on deposits from households and non-financial private enterprises both increased by 0.03 percentage points.

Interest rates on deposits in banks. Sector. Q1 2009-Q1 2011

Lower loans margin

The average NIBOR in the first three months of 2011 was somewhat lower than in December 2010, but at the end of March 2011 there was an increase in the 3 month effective NIBOR. Thus, the interest margin on loans fell by 0.06 from the end of December 2010 to the end of March 2011, while the interest margin on deposits increased by 0.03 percentage points in the same period. There have been no changes in Norges Bank’s key policy rate in the last four quarters.

Interest rates in financial corporations 1'st quarter 20111
 
  31 March 2011 31 December 2010 30 September 2010 30 June 2010 31 March 2010 Changes in interest rates Share of loans.
Per cent
  Last quarter Last year 31 March 2011 31 December 2010
 
1. Total loans from banks 4.62 4.61 4.66 4.56 4.42 0.01 0.20 57.5 58.3
2. Total bank deposits 2.26 2.22 2.20 2.11 1.99 0.04 0.27    
3. Banks' interest rate margin (1-2) 2.36 2.39 2.46 2.45 2.43 -0.03 -0.07    
                   
4. Lending rate, mortage companies 3.53 3.55 3.60 3.49 3.37 -0.02 0.16 33.6 32.8
5. Lending rate, life insurance
companies		 3.93 3.95 3.91 3.79 3.83 -0.02 0.10 1.3 1.3
6a. Lending rate, state lending
institutions		 2.95 3.03 2.79 2.76 2.72 -0.08 0.23 7.6 7.6
6b. Lending rate, state lending
institutions exclusive loans with
zero interest rates in the
Norwegian State Educational
Loan Fund		 3.45 3.49 3.29 3.21 3.16 -0.03 0.29 6.5 6.6
Total loans from financial
corporations2 		4.11 4.13 4.17 4.08 3.96 -0.02 0.15  100.0  100.0
                   
7.The Norwegian Public Service
Pension Fund		 2.74 2.74 2.75 2.49 2.25 0.00 0.49    
                   
8. Nibor (3mnd. effective) 2.73 2.66 2.66 2.86 2.39 0.07 0.34    
Deposits margin (8 - 2) 0.47 0.44 0.46 0.75 0.40 0.03 0.07    
Loans margin (1 - 8) 1.89 1.95 2.00 1.70 2.03 -0.06 -0.14    
                   
Key policy rate3 2.00 2.00 2.00 2.00 1.75 0.00 0.25    
Overnight lending rate3 3.00 3.00 3.00 3.00 2.75 0.00 0.25    
 
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.
2  Includes banks, mortgage companies, life insurance companies and state lending institutions. The Norwegian Public Service Pension Fund is not included.
3  Source: 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.

About the statistics

At the end of the 1st quarter of 2011, the interest rate statistics include data from 144 banks, 29 mortgage companies, 6 life insurance companies, 3 state lending institutions and The Norwegian Public Service Pension Fund.

 

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