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/en/bank-og-finansmarked/statistikker/orbofur/kvartal
4895
Fixed interest rate loans increase
statistikk
2007-05-31T10:00:00.000Z
Banking and financial markets
en
orbofur, Loans with fixed interest rates from banks and other financial corporations, lending, fixed-rate loan, fixed-rate periodFinancial institutions and other financial corporations, Banking and financial markets
false

Loans with fixed interest rates from banks and other financial corporations, Q1 2007

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Fixed interest rate loans increase

In the first quarter of 2007, the state lending institutions amount of fixed interest loans to households increased by a net of NOK 6 billion. Loans with a fixed interest period for one year and more show an 8.5 billon increase.

The share of loans with fixed interest rates from state lending institutions to households is now 34 per cent. That is up from 30 per cent in the previous quarter.

Fixed interest loans to households from banks, mortgage companies and state lending institutions by fixed interest period. Share of total loans. 2004-2007
  Banks Mortgage companies state lending institutions
  Less then 1 year 1 to 5 years More than 5 years    Total Less then 1 year 1 to 5 years More than 5 years    Total Less then 1 year 1 to 5 years More than 5 years    Total
Q1 2004 2.0 8.8 0.6 11.3 13.4 21.8 9.0 44.1 4.3 37.9 0.0 42.2
Q2 2004 1.6 8.5 0.6 10.6 11.7 19.5 7.3 38.5 4.5 38.2 0.0 42.7
Q3 2004 1.4 7.8 0.5 9.7 11.2 19.1 7.1 37.4 5.4 42.0 0.0 47.4
Q4 2004 1.6 7.2 0.5 9.2 11.8 16.2 8.1 36.1 4.0 40.4 0.0 44.3
Q1 2005 2.0 6.8 0.5 9.4 14.2 15.7 8.1 38.0 8.6 33.5 0.0 42.2
Q2 2005 2.7 5.5 0.5 8.7 11.1 15.0 7.3 33.3 9.9 32.0 0.0 42.0
Q3 2005 3.2 4.5 0.5 8.2 11.7 12.2 6.7 30.7 9.6 30.4 0.0 40.0
Q4 2005 2.9 4.1 0.6 7.6 16.7 14.6 7.7 39.0 8.6 30.5 0.0 39.1
Q1 2006 2.2 3.9 0.5 6.7 17.1 12.9 7.7 37.7 9.2 28.6 0.0 37.8
Q2 2006 1.5 3.6 0.6 5.7 15.5 10.4 6.4 32.4 3.9 28.8 0.0 32.7
Q3 2006 1.3 3.4 0.5 5.2 10.3 7.3 4.2 21.7 3.4 28.5 0.0 31.9
Q4 2006 1.4 2.9 0.7 4.9 4.7 7.3 4.8 16.7 3.0 27.4 0.0 30.4
Q1 2007 1.5 2.9 0.8 5.1 3.3 4.9 3.5 11.6 1.4 32.5 0.0 33.9

Change for loans with fixed interest rates

Due to portfolio movements between banks and mortgage companies, we prefer to look at these to groups together. They have an increase in their fixed interest rate share of loans to households of just 0.1 percentage point, up to 5.5 per cent. This is an increase of NOK 3.5 billion, which is lower than one could expect, since many experts have recommended people to fix their interest rates.

Banks, mortgage companies and state lending institutions. Total loans to households with fixed interest rate 1 year and more.

Banks, mortgage companies and state lending institutions. Total fixed interest rate loans to households, municipalities and non-financial corporations.

The share of loans to local governments, non-financial enterprises and households with fixed interest rates has declined from about 20 per cent of total loans in the first quarter of 2004 to 11.8 per cent by the end of the fourth quarter of 2006, before a 0.6 percentage point increase in the first quarter of 2007.

Households and non financial enterprises have low shares of fixed interest rate loans

The share of loans with fixed interest rates was 8.6 per cent of total loans to households in the fourth quarter 2006. This is an increase of 0.4 percentage points in the latest quarter, but a decline of more than 50 per cent since the first quarter of 2004.

The share of loans to non-financial enterprises with fixed interest rates fell from 19 per cent to 12.2 per cent of total loans in the same period, after an increase of 0.5 percentage point in the last quarter. However, non-financial enterprises may use other types of hedging instruments, for instance interest rate swaps, serving the same purpose as fixed interest rate loans.

Local government sectors increase the share of fixed interest rate loans

After a slump in the share of fixed interest rate loans to local government sectors to barely 40 per cent in the second quarter of 2005, the share of fixed interest rate loans has risen to 48 per cent at the end of the first quarter of 2007.