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54278
Falling interest rate on loans from state lending institutions
statistikk
2011-11-23T10:00:00.000Z
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, Q3 2011

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Falling interest rate on loans from state lending institutions

The fall in the interest rate on loans from state lending institutions continued in the third quarter of 2011contrary to an increase in the interest rate on loans from banks and mortgage companies. The increase in the deposit rate was less than the increase in the interest rate on loans from banks, which led to an increase in the interest rate margin in banks.

Interest rates on loans from state lending institutions and the Norwegian Public Service Pension Fund. Interest rates on 3-month treasury bills and average interest rates on 3, 5 and 10-year government bonds. Q3 2010-Q3 2011

Banks. Interest rates on total loans, deposits, interest rate margin and NIBOR. Q3 2009-Q3 2011

The average interest rate on loans from banks increased by 0.22 percentage points to 4.89 per cent, while the interest rate on deposits increased by 0.16 percentage points to 2.48 per cent in the 3rd quarter of 2011. The interest margin therefore increased by 0.06 percentage points to 2.41 per cent. The interest rate on deposits has increased since the end of the third quarter of 2009.

Increased interest rates on loans from mortgage companies and life insurance companies

The interest rate on loans from mortgage companies and life insurance companies increased by 0.21 and 0.04 percentage points respectively. The interest rate on total loans from financial corporations (banks, mortgage companies, life insurance companies and state lending institutions) increased by 0.18 percentage points to 4.34 per cent.

Falling interest rates on loans from state lending institutions

The interest rate on loans from state lending institutions (excluding loans with zero interest rates in the Norwegian State Educational Loan Fund) fell by 0.10 percentage points in the third quarter of 2011 after a fall in the two preceding quarters as well. The fall is due to lower interest rates on government bonds. The interest rate on loans from the Norwegian Public Service Pension Fund is determined on the basis of short-term treasury bills, and remained stable at 2.74 per cent.

Banks’ interest margins, households and non-financial private enterprises. Q3 2010-Q3 2011

Increased interest rate margin on loans from banks and mortgage companies, while the deposit margin fell

The increase in interest rates on loans and deposits could be explained by the increase in the key policy rate in May and an increase in the money market rates (NIBOR) in the last three quarters. The interest margin on loans in banks and mortgage companies increased by 0.10 and 0.11 percentage points respectively, while the deposits margin fell by 0.04 percentage points. The interest margin on loans in banks to non-financial corporations and households increased by 0.12 and 0.01 percentage points respectively.

Interest rates in financial corporations. Q3 2010-Q3 20111
  30 Sep.
2011 		   30 June
2011 		   31 March
2011 		   31 Dec.
2010 		   30 Sep.
2010 		   Changes in interest rates    Share of loans/deposits. Per cent
  Last quarter Last year 30 Sep. 2011 30 June 2011
Total loans from banks 4.89 4.67 4.61 4.61 4.66 0.22 0.23 56.5 57.0
Non-financial private enterprises 5.03 4.83 4.67 4.62 4.70 0.20 0.33 22.3 22.3
Households 4.82 4.60 4.61 4.64 4.66 0.22 0.16 33.3 33.7
Total bank deposits 2.48 2.32 2.25 2.22 2.20 0.16 0.28  100.0  100.0
Non-financial private enterprises 2.47 2.39 2.21 2.18 2.20 0.08 0.27 30.7 28.8
Households 2.42 2.21 2.23 2.20 2.16 0.21 0.26 61.8 62.7
Banks' interest rate margin (1-2) 2.41 2.35 2.36 2.39 2.46 0.06 -0.05    
Non-financial private enterprises 2.56 2.44 2.46 2.44 2.50 0.12 0.06    
Households 2.40 2.39 2.38 2.44 2.50 0.01 -0.10    
                   
Lending rate, mortage companies 3.78 3.57 3.53 3.55 3.60 0.21 0.18 0.35 0.34
Non-financial private enterprises 4.26 4.14 3.96 3.94 4.14 0.12 0.12 0.02 0.02
Households 3.84 3.62 3.63 3.66 3.68 0.22 0.16 0.26 0.25
Lending rate, life insurance companies 4.03 3.99 3.93 3.95 3.91 0.04 0.12 0.01 0.01
Lending rate, state lending institutions 2.79 2.92 2.95 3.03 2.79 -0.13 0.00 0.07 0.08
Lending rate, state lending institutions exsclusive loans with zero interest rates in the Norwegian State Educational Loan Fund 3.32 3.42 3.45 3.49 3.29 -0.10 0.03 0.06 0.06
Total loans from financial corporations2 4.34 4.16 4.12 4.13 4.17 0.18 0.17 1.00 1.00
Local government 3.43 3.27 3.13 3.17 3.21 0.16 0.22 0.07 0.07
Non-financial public enterprises 3.64 3.44 3.29 3.18 3.20 0.20 0.44 0.02 0.02
Non-financial private enterprises 4.94 4.76 4.60 4.55 4.65 0.18 0.29 0.25 0.25
Households 4.23 4.04 4.06 4.11 4.11 0.19 0.12 0.65 0.66
                   
The Norwegian Public Service Pension Fund 2.74 2.74 2.74 2.74 2.75 0.00 -0.01 0.01 0.01
Total loans from financial corporations and The Norwegian Public Service pension Fund 4.32 4.14 4.10 4.11 4.16 0.18 0.17 1.00 1.00
                   
10. Nibor (3 mths. effective)3 3.11 2.99 2.73 2.66 2.66 0.11 0.45    
Deposits margin (10-2) 0.63 0.67 0.48 0.44 0.46 -0.04 0.17    
Loans margin (1-10) 1.78 1.68 1.88 1.95 2.00 0.10 -0.22    
Loans margin (4-10) 0.67 0.58 0.80 0.89 0.94 0.10 -0.27    
                   
Banks. Repayment loans with home mortgages 4.33 4.14 4.14 4.17 4.21 0.19 0.12 0.22 0.22
Banks. Credit loans with home mortgages 3.80 3.55 3.55 3.59 3.62 0.25 0.18 0.06 0.06
Mortgage companies. Repayment loans with home mortgages 3.89 3.68 3.69 3.73 3.76 0.21 0.13 0.18 0.18
Mortgage companies Credit loans with home mortgages 3.72 3.48 3.48 3.49 3.48 0.24 0.24 0.08 0.08
Life insurance companiess. Repayment loans with home mortgages 3.44 3.37 3.69 3.76 3.77 0.07 -0.33 0.00 0.00
State lending institutions. Repayment loans with home mortgages 3.19 3.48 3.48 3.53 3.55 -0.29 -0.36 0.02 0.02
Home mortgages from financial corporations 4.07 3.91 3.92 3.96 4.00 0.16 0.07 0.43 0.43
Credit lines from financial corporations 3.76 3.51 3.51 3.54 3.55 0.25 0.21 0.14 0.14
Housing loans total from financial corporations 3.99 3.81 3.82 3.86 3.90 0.18 0.10 0.56 0.56
Total loans with home mortgages from financial corporations and The Norwegian Public Service pension Fund 3.97 3.79 3.80 3.84 3.82 0.18 0.14 0.58 0.58
                   
Banks. Loans margin repayment loans with home mortgages (9-8) 1.22 1.15 1.41 1.51 1.55 0.08 -0.33    
Banks. Loans margin on credit loans with home mortgages 0.69 0.56 0.82 0.93 0.96 0.14 -0.27    
Banks. Loans margin repayment loans with home mortgages (9-8) 0.78 0.69 0.96 1.07 1.10 0.10 -0.32    
Mortgage companies. Loans margin on credit loans with home mortgages 0.61 0.49 0.75 0.83 0.82 0.13 -0.21    
                   
Key policy rate4 2.25 2.25 2.00 2.00 2.00 0.00 0.25    
Overnight lending rate4 3.25 3.25 3.00 3.00 3.00 0.00 0.25    
Lending rate banks and mortage companies 4.47 4.26 4.22 4.23 4.29 0.21 0.18 0.91 0.91
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: Reuters and Norges Bank.
4  Source: Norges Bank.

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 3rd quarter of 2011, the interest rate statistics include data from 145 banks, 30 mortgage companies, 6 life insurance companies, 3 state lending institutions and the Norwegian Public Service Pension Fund.