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84842
Reduced interest rate on loans
statistikk
2012-05-31T10:00:00.000Z
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 2012

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Reduced interest rate on loans

The average interest rate on loans from banks and mortgage companies fell 0.12 percentage points, while the banks’ interest rate on deposits fell by 0.07 percentage points in the 1st quarter of 2012. The banks and mortgage companies’ loan margin rose by 0.51 percentage points during the same period.

Banks. Interest rates on total loans, deposits and interest rate margin. Q1 2005-Q1 2012

Banks’ average interest rate on loans fell by 0.12 percentage points to 4.91 per cent at the end of the 1st quarter in 2012. The mortgage companies’ average interest rate on loans fell 0.09 percentage points to 3.87 per cent in the same period. The interest rate on loans from banks and mortgage companies to households and non-financial companies fell by 0.03 and 0.23 percentage points respectively at the end of the 1st quarter this year. The banks’ interest rate margin reached 2.41 percentage units in the last quarter; a decrease of 0.05 percentage points compared to the 4th quarter of 2011.

Institutional sector classification 2012

The institutional sector classification has been revised. New four-digit sector codes have been introduced and the definitions of some sectors in the classification have been changed. The revised sector classification will be implemented in the Norwegian statistical system over the next two years.

The sector definitions in the interest rate statistics were altered as from the 1st quarter of 2012. This may influence the time series due to sector movements.
(6 June 2012)

Decreasing interest rate on deposits

The average interest rate on deposits in banks fell by 0.07 percentage points to 2.50 per cent at the end of the 1st quarter of 2012. The interest rate on deposits from households was stable at 2.58 per cent during the last two quarters, while the interest rate on deposits from non-financial corporations fell by 0.17 percentage points to 2.29 per cent. It should be noted that interest rate changes in sectors may be influenced by the new institutional sector definitions, see below for further details.

Higher margins on loans and lower deposit margins

The loans margin in banks and mortgage companies has increased during the last three quarters, reaching 2.16 percentage points at the end of the 1st quarter this year. The increase from the 4th quarter of 2011 to the last quarter was 0.51 percentage points. The deposit margin in banks fell by 0.56 percentage points in the same quarter.

Marginal fall in interest rate on housing loans

Banks and mortgage companies’ average interest rate on loans secured on dwellings was 4.20 per cent at the end of the 1st quarter in 2012; a marginal fall from 4.23 per cent at the end of the 4th quarter in 2011. Compared to the 1st quarter of 2011, this quarter’s interest rate is an increase of 0.37 percentage points.

Loans secured on dwellings are divided into two categories; repayment loans and credit lines. Repayment loans have an average interest rate of 4.28 per cent at the end of the 1st quarter in 2012, while the interest rate on credit lines was 3.99 per cent in the same quarter. Both categories of loans secured on dwellings face a decrease in the interest rate compared to the end of the 4th quarter in 2011.

Falling interest rate on loans in state lending institutions

The average interest rate on loans from state lending institutions (excluded loans with a zero interest rate) fell 0.07 percentage points to 3.20 per cent at the end of the 1st quarter of 2012. The interest rate in the Norwegian Public Service Pension Fund has been stable at 2.75 per cent since the 3rd quarter of 2010.

Definitions and other important information

Interest margin: the difference between banks’ average lending and deposit rates.

Lending margin: the difference between banks’ interest rates on loans and the NIBOR rate.

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 2012, 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 57, 34, 8 and 1 per cent respectively of total loans.

The three state lending institutions are 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 are also determined on the basis of interest rates on government bonds and treasury bills.

Interest rates at-end quarter. Financial corporations. 1st quarter 2011-1st quarter 2012.1Per cent, percentage points and shares
  31 March 2012 31 December 2011 30 September 2011 30 June 2011 31 March 2011 Changes in interest rates. Percentage points Share of total loans/deposits
  Quarterly Yearly
1. Total loans from banks 4.91 5.03 4.89 4.67 4.61 -0.12 0.30 0.54
2. Total bank deposits 2.50 2.57 2.48 2.32 2.25 -0.07 0.25 1.00
Banks' interest rate margin (1 - 2) 2.41 2.46 2.41 2.35 2.36 -0.05 0.05  
4. Lending rate, mortage companies 3.87 3.96 3.78 3.57 3.53 -0.09 0.34 0.37
Loans from banks and mortgage companies 4.49 4.61 4.47 4.26 4.22 -0.12 0.27 0.91
                 
5. Lending rate, life insurance companies 3.89 4.02 4.03 3.99 3.93 -0.13 -0.04 0.01
6a.Lending rate, state lending institutions 2.75 2.84 2.79 2.82 2.84 -0.02 -0.02 0.07
6b. Lending rate, state lending institutions exclusive loans with zero interest rates in the Norwegian State Educational Loan Fund 3.20 3.27 3.32 3.42 3.45 0.01 -0.17 0.06
                 
Total loans from financial corporations2 4.35 4.47 4.34 4.15 4.11 -0.11 0.25 1.00
7. Loans from The Norwegian Public Service Pension Fund 2.75 2.75 2.75 2.74 2.74 0.00 0.01 0.01
Total loans from financial corporations and The Norwegian Public Service Pension Fund 4.33 4.45 4.32 4.13 4.09 -0.11 0.24 1.00
                 
8. Nibor (3 month effective)3 2.33 2.96 3.11 2.99 2.73 -0.63 -0.40  
Deposits margin (8 - 2) -0.17 0.39 0.63 0.67 0.48 -0.56 -0.65  
Banks' loans margin(1 - 8) 2.58 2.07 1.78 1.68 1.88 0.51 0.70  
Mortgage companies loans margin (4 - 8) 1.54 1.00 0.67 0.58 0.80 0.54 0.74  
Utlånsmargin banker og kredittforetak 2.16 1.65 1.36 1.27 1.49 0.51 0.67  
                 
Banks and mortgage companies. Repayment loans secured on dwellings 4.28 4.31 4.13 3.94 3.95 -0.03 0.33 0.41
Banks and mortgage companies. Credit lines secured on dwellings 3.99 4.01 3.76 3.51 3.51 -0.02 0.48 0.14
Banks and mortgage companies. Total loans secured on dwellings 4.21 4.23 4.03 3.83 3.84 -0.03 0.37 0.54
                 
Norges Banks key policy rate4 1.50 1.75 2.25 2.25 2.00 -0.25 -0.50  
Overnight lending rate4 2.50 2.75 3.25 3.25 3.00 -0.25 -0.50  
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  Reuters and Norges Bank.
4  Norges Bank.