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/en/bank-og-finansmarked/statistikker/orbofrent/kvartal
84844
Reduced interest rates on housing loans
statistikk
2012-08-29T10:00:00.000Z
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, Q2 2012

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Reduced interest rates on housing loans

The average interest rate on loans secured on dwellings from banks and mortgage companies fell by 0.18 percentage points during the 2nd quarter this year, reaching 4.03 per cent. The average interest rate on total loans from financial corporations fell by 0.16 percentage points, while the banks’ deposit rate fell by 0.2 percentage points.

Banks. Interest rates on total loans, deposits and interest rate margin. Q2 2005-Q2 2012

Average interest rate on loans secured by dwellings from banks and mortgage companies. Q3 2006-Q2 2012. Per cent

The interest rates on repayment loans and credit lines secured on dwellings from banks and mortgage companies both fell in the last quarter this year. The credit lines still have the lowest interest rate level by 3.8 per cent, while the average interest rate on repayment loans secured on dwellings was 4.11 per cent at the end of the 2nd quarter this year.

Continued fall in interest rates on loans and deposits

The average interest rate on total loans from banks and mortgage companies fell by 0.16 percentage points, reaching 4.32 per cent at the end of the 2nd quarter 2012. The banks’ interest rate margin rose to 2.46 percentage points in the same period, up from 2.40 percentage points the previous quarter.

The banks’ average interest rate on deposits fell by 0.2 percentage points during the 2nd quarter this year, reaching 2.31 per cent. The average deposit interest rate for households fell by 0.26 percentage points in this period to 2.33 per cent, while the interest rate for private non-financial corporations fell by 0.1 percentage point to 2.19 per cent.

Lower lending margin and increased deposit margin

The banks’ lending margin fell by 0.16 percentage points in the last quarter, reaching 2.42 percentage points. This is still a high margin compared to all periods in 2011. The banks’ deposit margin rose by 0.22 percentage points in the 2nd quarter 2012 to 0.04 per cent.

Falling interest rate in the Norwegian Public Service Pension Fund

The average interest rate on loans from the Norwegian Public Service Pension Fund was 2.25 per cent in the 2nd quarter 2012, down from 2.75 per cent in all previous periods since the 3rd quarter 2010. The average interest rate on loans from state lending institutions, excluding student loans with zero interest rate, fell by 0.15 percentage points in the 2nd quarter this year, and was 3.05 per cent at the end of the quarter.

The interest rate on loans from life insurance companies fell by 0.05 percentage points last quarter. These loans constituted a tiny share of 1 per cent of total loans.

The average interest rate from all financial corporations fell by 0.16 percentage points in the second quarter this year, reaching 4.19 per cent. The interest rate on loans to households fell by 0.18 percentage points to 4.19 per cent, while the interest rate on loans to private non-financial corporations fell by 0.1 percentage points to 4.5 per cent in the 2nd quarter this year.

NIBOR is the average money market interest rate; the interest rate on loans between banks.

The interest rate margin is the difference between banks’ average lending and deposit rates.

The lending margin is the difference between banks’ interest rates on loans and the NIBOR rate.

The deposit margin is the difference between the NIBOR rate and banks’ interest rates on deposits.

New institutional sector definitions

The sector definitions in these statistics were altered in the 1st quarter of 2012. This may influence the time series due to sector movements.

More information, new institutional sector definitions .

About the statistics

At the end of the 2nd quarter of 2012, the interest rate statistics include data from 141 banks, 29 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 54, 38, 7 and 1 per cent of total loans respectively.

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 determined on the basis of the interest rates on government bonds and treasury bills.

Interest rates at-end quarter. Financial corporations. 1st quarter 2011-1st quarter 2012. Per cent, percentage points and shares1
  30 June 2012 31 March 2012 31 December 2011 30 September 2011 30 June 2011 Changes in interest rates. Percentage points Share of total loans/deposits
  Quarterly Yearly
1. Total loans from banks 4.77 4.91 5.03 4.89 4.67 -0.14 0.10 0.54
2. Total bank deposits 2.31 2.51 2.57 2.48 2.32 -0.20 -0.01 1.00
Banks' interest rate margin (1 - 2) 2.46 2.40 2.46 2.41 2.35 0.06 0.11 .
4. Lending rate, mortage companies 3.68 3.87 3.96 3.78 3.57 -0.19 0.11 0.37
Loans from banks and mortgage companies 4.32 4.48 4.61 4.47 4.26 -0.16 0.06 0.91
                 
5. Lending rate, life insurance companies 3.84 3.89 4.02 4.03 3.99 -0.05 -0.15 0.01
6a.Lending rate, state lending institutions 2.60 2.75 2.84 2.79 2.82 -0.15 -0.22 0.07
6b. Lending rate, state lending institutions exclusive loans with zero interest rates in the Norwegian State Educational Loan Fund 3.05 3.20 3.27 3.32 3.42 -0.15 -0.36 0.06
                 
Total loans from financial corporations2 4.19 4.35 4.47 4.34 4.15 -0.16 0.04 1.00
7. Loans from The Norwegian Public Service Pension Fund 2.25 2.75 2.75 2.75 2.74 -0.50 -0.49 0.01
Total loans from financial corporations and The Norwegian Public Service Pension Fund 4.16 4.33 4.45 4.32 4.13 -0.17 0.03 1.00
                 
8. Nibor (3 month effective)3 2.35 2.33 2.96 3.11 2.99 0.02 -0.64 .
Deposits margin (8 - 2) 0.04 -0.18 0.39 0.63 0.67 0.22 -0.63 .
Banks' loans margin(1 - 8) 2.42 2.58 2.07 1.78 1.68 -0.16 0.74 .
Mortgage companies loans margin (4 - 8) 3.68 1.54 3.96 0.67 0.58 2.14 3.10 .
Utlånsmargin banker og kredittforetak 1.97 2.15 1.65 1.36 1.27 -0.18 0.70 .
                 
Banks and mortgage companies. Repayment loans secured on dwellings 4.11 4.29 4.31 4.14 3.94 -0.17 0.17 0.41
Banks and mortgage companies. Credit lines secured on dwellings 3.80 3.99 4.01 3.76 3.51 -0.19 0.29 0.14
Banks and mortgage companies. Total loans secured on dwellings 4.03 4.21 4.24 4.04 3.83 -0.18 0.20 0.54
                 
Norges Banks key policy rate4 1.50 1.50 1.75 2.25 2.25 0.00 -0.75 .
Overnight lending rate4 2.50 2.50 2.75 3.25 3.25 0.00 -0.75 .
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 og Norges Bank.
4  Norges Bank.