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159774
Interest rate margins continue to fall
statistikk
2014-05-26T10:00:00.000Z
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
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Interest rates in banks and other financial enterprises, Q1 2014

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Interest rate margins continue to fall

After a fall in the two previous quarters, banks’ interest rate margin and the interest rate on total loans from financial corporations to households fell by a further 0.03 percentage points in the 1st quarter of 2014. The interest rate on loans to non-financial private companies was more or less stable.

Interest rates and margins from financial corporations. General public1Published 26 May 2014
1st quarter 20144th quarter 2013
1Due to changes in specifications applied from 3rd quarter 2013, the time series are not directly comparable to previous periods.
Interest rates including commissions on loans
Banks4.724.74
Mortgage comanies3.703.73
State lending institutions2.522.49
Life insurance companies3.273.47
Financial corporations, total4.144.16
The Norwegian Public Service Pension Fund2.752.25
 
Interest rates on deposits
Banks2.242.23
 
Margins
Banks and mortgage companies. Loans margin2.522.59
Banks. Interest rate margin2.482.51
Banks. Deposits margin-0.47-0.51

Source: Statistics Norway

Figure 1. Banks and mortgage companies' interest rate on housing loans and NIBOR

The interest rate on repayment loans with home mortgages and credit lines secured on dwellings from banks and mortgage companies fell by 0.03 and 0.02 percentage points in the 1st quarter of 2014 to 4.09 and 4.06 per cent respectively. The loan margin on repayment loans with home mortgages and credit lines secured on dwellings fell by 0.07 and 0.06 percentage points respectively.

Lower interest rates on loans from banks and mortgage companies

After a fall in the two previous quarters, the interest rate on loans from banks and mortgage companies fell by a further 0.02 percentage points to 4.29 per cent in the first quarter of 2014. The banks’ interest rate on deposits was 2.24 per cent at the end of the 1st quarter of 2014; approximately unchanged compared to the previous quarter.

Increased interest rates on loans from state lending institutions

The interest rate on loans from state lending institutions (including loans with zero interest rates in the Norwegian State Educational Loan Fund) increased by 0.03 percentage points to 2.52 per cent in the first quarter of 2014. The interest rate on loans from The Norwegian Public Service Pension Fund increased by 0.5 percentage points to 2.75 per cent in this period. The interest rate on loans from life insurance companies fell by 0.20 percentage points to 3.27 per cent.

About the dataOpen and readClose

At the end of the 1st quarter of 2014, the interest rate statistics included data from 135 banks, 26 mortgage companies, 3 state lending institutions, 5 life insurance companies and the Norwegian Public Service Pension Fund. The share of loans from banks, mortgage companies, state lending institutions, life insurance companies and the Norwegian Public Service Pension Fund was 51, 38, 8, 1 and 2 per cent of total loans respectively.

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