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Still moderate demand for fixed interest rate loans
statistikk
2009-02-25T10:00:00.000Z
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, Q4 2008

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Still moderate demand for fixed interest rate loans

There was a modest increase in the share of loans with fixed interest rate to the general public in the fourth quarter of 2008. The fixed interest rate share increased on loans to non-financial companies and fell on loans to households.

Banks, mortgage companies and state lending institutions. Share of fixed interest loans to the general public, households and non-financial enterprises. Q1 2004-Q3 2008

Even though there was a large decline in the interest rate level on fixed interest rate loans at the end of 2008, most households and non-financial companies still choose floating interest rate on their loans. The financial enterprises’ share of fixed interest rate loans of total loans to the general public increased by 0.4 percentage points, to 11.7 per cent, in the fourth quarter of 2008. This is 0.6 higher than in the fourth quarter of 2007. The share of fixed interest rate loans, of total loans to non-financial companies, increased from 12 to 13.5 per cent, while the share of fixed interest rate loans of total loans to households fell from 7.3 to 6.9 percent in the same period. The share of fixed interest rate loans of total loans to local government increased from 48.5 to 50.2 per cent.

Continued decline in the share of fixed rate loans to households

Apart from the first quarter of 2007, the share of fixed interest loans to households have decreased in all quarters since these statistics started. The fall from quarter three to quarter four 2008 is mainly due to the decline in the share of fixed rate loans from state lending institutions to households, from 32.2 to 27.8 per cent. The corresponding share of fixed rate loans from banks remained stable at 4.6 per cent, while there was an increase in the share of fixed rate loans from mortgage companies to households, from 4.2 to 4.8 per cent.

Banks, mortgage companies and state lending institutions. Share of fixed interest loans to households. Q1 2004-Q4 2008

The decrease in the share of fixed rate loans from state lending institutions to households are partly explained by the fact that some borrowers have chosen to switch to floating interest rates when their previous fixed term loan agreements are up for negotiation. There is an increase in the share of fixed interest rate loans from mortgage companies despite of portfolio movements of housing loans with floating interest rates from banks to mortgage companies. Such portfolio movements have become more and more prevalent after the Norwegian Governments first actions against the financial crisis ("Bankpakke 1").

The share of fixed rate loans with less than one year remaining maturity from the state lending institutions fell from 12.3 to 7.6 per cent, while there was a small increase for loans with less than one year remaining maturity from banks and mortgage companies.

Fixed interest loans to households from banks, mortgage companies and state lending institutions by fixed interest period. Q1 2004-Q4 2008. Share of total loans
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 7.5
Q3 2008 1.1 2.8 0.7 4.6 1.1 1.2 1.9 4.2 12.3 20.5 0.0 32.8 2.2 4.3 0.9 7.3
Q4 2008 1.3 2.6 0.6 4.6 1.3 1.7 1.8 4.8 7.6 20.1 0.1 27.7 1.9 4.2 0.8 6.9