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This is an archived release.
Fixed interest share keeps falling
By the end of the second quarter of 2008, the share of loans to households with fixed interest rate was only 7.4 per cent. Following several quarters of increase the fixed interest rate share on loans to non-financial corporations also increased.
The financial enterprises’ share of fixed interest rate loans of total loans to the general public (non-financial corporations, municipalities and households) was 11.2 per cent in the second quarter of 2008, a small decrease from the first quarter. In comparison the share was close to 20 per cent in the same period of 2004.
Still decreasing share of fixed interest loans to households
Apart from the first quarter of 2007 the share of fixed interest loans to households has decreased in all quarters since this statistics started. In the second quarter of 2004 the share was close to 17 per cent, while it was only 7.4 per cent in the second quarter of 2008. The share of fixed interest loans to households from banks and mortgage companies both fell, while it increased on loans from state lending institutions
The share of fixed interest loans from banks to households was 4.5 per cent by the end of the second quarter of 2008, down from 4.7 in the previous quarter. The share of fixed interest loans from mortgage companies and state lending institutions was 5.3 and 33 per cent respectively.
Loans to households with more than five years fixed interest rate increased by NOK 0.7 billion, and amounted to NOK 14.6 billion by the end of the second quarter of 2008. This represents 0.8 per cent of the total loans to households, unaltered from the first quarter of 2008.
| Quarter | Banks | Mortgage companies | State lending institutions | Mean | |||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Less than
1 year |
1 to 5 years |
More than
5 years |
Total |
Less than
1 year |
1 to 5 years |
More than
5 years |
Total |
Less than
1 year |
1 to 5 years |
More than
5 years |
Total | Less than 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 | 2.9 | 13.8 | 0.9 | 17.6 | |||||||||||||||||||||||
| 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 | 2.5 | 13.4 | 0.9 | 16.7 | |||||||||||||||||||||||
| 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 | 2.5 | 13.2 | 0.8 | 16.5 | |||||||||||||||||||||||
| 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 | 2.4 | 12.2 | 0.8 | 15.4 | |||||||||||||||||||||||
| 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 | 3.5 | 10.8 | 0.9 | 15.2 | |||||||||||||||||||||||
| 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 | 4.1 | 9.4 | 0.8 | 14.3 | |||||||||||||||||||||||
| 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 | 4.4 | 8.2 | 0.7 | 13.3 | |||||||||||||||||||||||
| 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 | 4.1 | 7.8 | 0.8 | 12.6 | |||||||||||||||||||||||
| 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 | 3.6 | 7.3 | 0.7 | 11.6 | |||||||||||||||||||||||
| 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 | 2.2 | 6.8 | 0.7 | 9.7 | |||||||||||||||||||||||
| 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 | 1.9 | 6.4 | 0.6 | 8.9 | |||||||||||||||||||||||
| 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 | 1.7 | 5.8 | 0.7 | 8.2 | |||||||||||||||||||||||
| Q1 2007 | 1.5 | 2.9 | 0.8 | 5.1 | 3.3 | 5.0 | 3.3 | 11.6 | 1.4 | 32.5 | 0.0 | 33.9 | 1.6 | 6.2 | 0.8 | 8.6 | |||||||||||||||||||||||
| Q2 2007 | 1.5 | 2.6 | 0.8 | 4.9 | 2.5 | 4.0 | 2.2 | 8.7 | 1.7 | 32.2 | 0.0 | 33.9 | 1.6 | 5.8 | 0.8 | 8.2 | |||||||||||||||||||||||
| Q3 2007 | 1.6 | 2.4 | 0.7 | 4.8 | 3.0 | 3.3 | 2.1 | 8.3 | 3.9 | 30.5 | 0.0 | 34.3 | 2.0 | 5.4 | 0.7 | 8.1 | |||||||||||||||||||||||
| Q4 2007 | 1.5 | 2.5 | 0.7 | 4.8 | 3.0 | 2.3 | 1.5 | 6.8 | 9.6 | 23.6 | 0.0 | 33.3 | 2.5 | 4.7 | 0.7 | 7.9 | |||||||||||||||||||||||
| Q1 2008 | 1.4 | 2.5 | 0.7 | 4.7 | 2.3 | 1.7 | 2.6 | 6.6 | 9.6 | 22.8 | 0.0 | 32.4 | 2.3 | 4.5 | 0.8 | 7.6 | |||||||||||||||||||||||
| Q2 2008 | 1.2 | 2.6 | 0.7 | 4.5 | 1.6 | 1.3 | 2.3 | 5.2 | 12.7 | 20.3 | 0.0 | 33.0 | 2.4 | 4.2 | 0.8 | 7.4 | |||||||||||||||||||||||
Decrease also for non-financial corporations
Following several quarters of increase the fixed interest share of mortgage companies’ loans to households fell to 11.5 per cent in the second quarter of 2008. Many corporations can secure themselves against changes in interest rates in other ways than fixed interest share loans. For instance they can make agreements of interest rate swap with other corporations, financial or non-financial.
Loans to non-financial corporations with more than five years fixed interest rate increased by NOK 1.8 billion, and amounted to NOK 15.2 billion by the end of the second quarter of 2008. This represents 1.7 per cent of the total loans to non-financial corporations.
The share of fixed interest loans from banks to non-financial corporations was 8.3 per cent by the end of the second quarter of 2008, down form 8.5 per cent in the previous quarter.
Local government chooses fixed interest rate
The share of fixed interest loans to local government is high and has remained between 40 and 50 per cent since 2004. In the second quarter of 2008 the share was close to 48 per cent, up nearly 2 percentage points from the first quarter.
Unaltered share on loans from banks, decreasing share for mortgage companies
The statistics include all loans from banks, mortgage companies and state lending institutions. When comparing the different creditor sectors’ share of fixed interest rate loans to the general public, it is evident that the banks’ share has fallen in all quarters before it levelled out in the third quarter of 2007. In the two succeeding quarters the share increased, and by the end of the second quarter of 2008 the share was 5.9 per cent, a marginal increase from the previous quarter.
Mortgage companies’ share of fixed interest rate loans has decreased in most quarters since 2004. In the fourth quarter of 2007 this share decreased by 3.6 per cent to barely 30 per cent, while the share fell by another percentage point in the first quarter of 2008. By the end of the second quarter of 2008 the share was 27 per cent, an additional 2 percentage decrease from the first quarter. The decrease in the mortgage companies’ share of fixed interest rate loans is largely due to portfolio movements of housing loans with floating interest rates from banks to mortgage companies within the same company group. Such portfolio movements have become more common as a consequence of the new regulations for bonds with right of priority, which was introduced on 1 June 2007.
Increase for the state banks
State lending institutions, often referred to as state banks, still have a relatively high share of fixed interest loans to the general public. Following some quarters of decrease the share increased in the second quarter, and the statebanks’ share of fixed interest loans to the general public was close to 35 per cent.
The statistics is now published as Interest rates in banks and mortgage companies.
Additional information
This statistics show loans broken down by the remaining fixed interest rate period. The fixed interest rate period is measured as the time from the end of the reported period to the next interest rate regulation. Differences between figures in the text and the tables due to rounding off may occur.
Contact
-
Statistics Norway's Information Centre
E-mail: informasjon@ssb.no
tel.: (+47) 21 09 46 42