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66098
Increased interest rate on loans from banks and mortgage companies
statistikk
2012-02-22T10:00:00.000Z
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, Q4 2011

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Increased interest rate on loans from banks and mortgage companies

Interest rate on loans from banks and mortgage companies continued to increase in the fourth quarter of 2011. The interest rate on deposits increased as well. The increase in the deposit rate was less than the increase in the interest rate on loans from banks. Hence the interest rate margin in banks increased too. The interest rate on loans from state lending institutions was still falling.

In the fourth quarter of 2011 the interest rate on loans from banks increased by 0.14 points to 5.03 per cent and the interest rate on deposits increased by 0.09 percentage points to 2.57 per cent. In the same period the interest rate on loans from mortgage companies increased by 0.18 percentage points to 3.96 per cent. The interest rate on deposits has increased each quarter over the last two years, while the interest rates on loans from banks and mortgage companies has increased in each quarter in 2011.

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

The interest margin in banks increased by 0.05 percentage points to 2.46 per cent after an increase also in the two previous quarters. The interest margin on loans from banks to non-financial corporations and households increased by respectively 0.07 and 0.05 percentage points. The interest margin on loans to non-financial corporations was 0.19 percentage points higher than at the end of 2010, while the interest margin on loans to households was almost at the same level.

Interest rates on government bonds and treasury bills 1990 - 2011.

Banks. Interest rates on total loans, deposits, interest rate margin and NIBOR. Q4 2009-Q4 2011

The increase in interest rates on loans and deposits could be explained by an increase in the average money market rates (NIBOR) in the last quarter. The interest margin on loans from banks and mortgage companies rose by respectively 0.29 and 0.33 percentage points, while the deposits margin fell by 0.24 percentage points in the same period.

Lowest interest rates on mortgage loans from state lending institutions since 1996

The interest rate on loans from state lending institutions, excluding loans with zero interest rates in the Norwegian State Educational Loan Fund, fell by 0.05 percentage points to 3.27 per cent in the fourth quarter of 2011. This rate fell in the three preceding quarters as well. The interest rate on mortgage loans from state lending institutions fell by 0.07 percentage points to 3.12 per cent, the lowest level ever in the observation period starting in 1996. The fall is due to a fall in interest rates on government bonds and treasury bills to a historic low level.

Another explanation may be a higher share of loans with fixed interest rates. Loans with fixed interest rates, with a maturity of 1 to 5 years from state lending institutions, paid lower interest rates than loans on floating interest rates in the fourth quarter of 2011.

The interest rate on loans from life insurance companies was also almost unchanged at 4.02 per cent. The interest rate on total loans from financial corporations (banks, mortgage companies, life insurance companies and state lending institutions) increased by 0.13 percentage points to 4.47 per cent.

The interest rate on loans from the Norwegian Public Service Pension Fund has remained stable at 2.75 per cent since the third quarter of 2010.

Interest rates on loans with home mortgages from banks, mortgage companies life insurance companies, state lending institution and The Norwegian Public Service pension Fund. Interest rates on deposits. Q2 1987-Q4 2011.

Interest rates on loans from banks, mortgage companies life insurance companies, state lending institution and The Norwegian Public Service pension Fund. Interest rates on deposits. Q4 1979-Q4 2011.

Interest rates in financial corporations at end quarter, Q4 2010-Q 20111
  31 December 2011 30 September 2011 30 June 2011 31 March 2011 31 December 2010 Changes in interest rates Share of loans/deposits. Per cent
  Last quarter Last year 31 December 2011 30 September 2011
Total loans from banks 5.03 4.89 4.67 4.61 4.61 0.14 0.42 0.55 0.57
Non-financial private enterprises 5.09 5.03 4.83 4.67 4.62 0.06 0.47 0.22 0.22
Households 5.03 4.82 4.60 4.61 4.64 0.21 0.39 0.32 0.33
Total bank deposits 2.57 2.48 2.32 2.25 2.22 0.09 0.35 1.00 1.00
Non-financial private enterprises 2.46 2.47 2.39 2.21 2.18 -0.01 0.28 0.31 0.31
Households 2.58 2.42 2.21 2.23 2.20 0.16 0.38 0.62 0.62
Banks' interest rate margin (1-2) 2.46 2.41 2.35 2.36 2.39 0.05 0.07 . .
Non-financial private enterprises 2.63 2.56 2.44 2.46 2.44 0.07 0.19 . .
Households 2.45 2.40 2.39 2.38 2.44 0.05 0.01 . .
                   
Lending rate, mortage companies 3.96 3.78 3.57 3.53 3.55 0.18 0.41 0.36 0.35
Non-financial private enterprises 4.41 4.26 4.14 3.96 3.94 0.15 0.47 0.02 0.02
Households 4.07 3.84 3.62 3.63 3.66 0.23 0.41 0.27 0.26
Lending rate, life insurance companies 4.02 4.03 3.99 3.93 3.95 -0.01 0.07 0.01 0.01
Lending rate, state lending institutions 2.84 2.79 2.92 2.95 3.03 0.05 -0.19 0.07 0.07
Lending rate, state lending institutions exsclusive loans with zero interest rates in the Norwegian State Educational Loan Fund 3.27 3.32 3.42 3.45 3.49 -0.05 -0.22 0.06 0.06
Total loans from financial corporations2 4.47 4.34 4.16 4.12 4.13 0.13 0.34 1.00 1.00
Local government 3.41 3.43 3.27 3.13 3.17 -0.02 0.24 0.07 0.07
Non-financial public enterprises 3.64 3.64 3.44 3.29 3.18 0.00 0.46 0.02 0.02
Non-financial private enterprises 4.99 4.94 4.76 4.60 4.55 0.05 0.44 0.25 0.25
Households 4.42 4.23 4.04 4.06 4.11 0.19 0.31 0.65 0.65
                   
The Norwegian Public Service Pension Fund 2.75 2.75 2.74 2.74 2.74 0.00 0.01 0.01 0.01
Total loans from financial corporations and The Norwegian Public Service pension Fund 4.45 4.32 4.14 4.10 4.11 0.13 0.33 1.00 1.00
                   
10. Nibor (3mnd. effectiv)3 2.96 3.11 2.99 2.73 2.66 -0.15 0.30 . .
Deposits margin (10 - 2) 0.39 0.63 0.67 0.48 0.44 -0.24 -0.05 . .
Loans margin (1 - 10) 2.07 1.78 1.68 1.88 1.95 0.29 0.12 . .
Loans margin (4 - 10) 1.00 0.67 0.58 0.80 0.89 0.33 0.11 . .
                   
Banks. Repayment loans with home mortgages 4.49 4.33 4.14 4.14 4.17 0.16 0.32 0.21 0.22
Banks. Credit loans with home mortgages 4.03 3.80 3.55 3.55 3.59 0.23 0.44 0.06 0.06
Mortgage companies. Repayment loans with home mortgages 4.10 3.89 3.68 3.69 3.73 0.21 0.37 0.19 0.18
Mortgage companies Credit loans with home mortgages 4.00 3.72 3.48 3.48 3.49 0.28 0.51 0.08 0.08
Life insurance companiess. Repayment loans with home mortgages 3.65 3.44 3.37 3.69 3.76 0.21 -0.11 0.00 0.00
State lending institutions. Repayment loans with home mortgages 3.12 3.19 3.48 3.48 3.53 -0.07 -0.41 0.02 0.02
Home mortgages from financial corporations 4.24 4.07 3.91 3.92 3.96 0.17 0.28 0.43 0.43
Credit lines from financial corporations 4.01 3.76 3.51 3.51 3.54 0.25 0.47 0.14 0.14
Housing loans total from financial corporations 4.18 3.99 3.81 3.82 3.86 0.19 0.32 0.57 0.56
Total loans with home mortgages from financial corporations and The Norwegian Public Service pension Fund 4.15 3.97 3.79 3.80 3.79 0.18 0.37 0.58 0.58
                   
Banks. Loans margin repayment loans with home mortgages (9 - 8) 1.53 1.22 1.15 1.41 1.51 0.31 0.02 . .
Banks. Loans margin on credit loans with home mortgages 1.07 0.69 0.56 0.82 0.93 0.38 0.14 . .
Loans margin repayment loans with home mortgages (9 - 8) 1.14 0.78 0.69 0.96 1.07 0.36 0.07 . .
Mortgage companies. Loans margin on credit loans with home mortgages 1.04 0.61 0.49 0.75 0.83 0.43 0.21 . .
                   
Norges Banks key policy rate4 1.75 2.25 2.25 2.00 2.00 -0.50 -0.25 . .
Overnight lending rate4 2.75 3.25 3.25 3.00 3.00 -0.50 -0.25 . .
Lending rate, banks and mortgage companies 4.61 4.47 4.26 4.22 4.23 0.14 0.38 0.91 0.91
1  Veide gjennomsnittlige rentesatser inkl. provisjoner på utlån til publikum fra banker og andre finansforetak. Veide gjennomsnittlige rentesatser på innskudd i banker fra publikum i NOK. Veide gjennomsnittlige rentemarginer i banker. Prosent p.a.
2  Includes banks, mortgage companies, life insurance companies and state lending institutions. The Norwegian Public Service Pension Fund is not included.
3  Source: Reuters og 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 4’Th quarter of 2011, the interest rate statistics include data from 141 banks, 30 mortgage companies, 6 life insurance companies, 3 state lending institutions and the Norwegian Public Service Pension Fund. The share of loans from banks, mortgage companies, state lending institutions and life insurance companies were 55, 36, 7 and 1 per cent of total loans from these institutions.

About the statistics

The three state lending institutions includes the Norwegian State Housing Bank, the Norwegian State Educational Loan Fund (Lånekassen) and Innovation Norway. The interest rates on loans from Lånekassen, the Norwegian State Housing Bank and the Norwegian Public Service Pension Fund as well are determined on the basis of the interest rates on government bonds and treasury bills.