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4879
Increased demand for fixed interest rate
statistikk
2009-05-27T10:00:00.000Z
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 2009

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Increased demand for fixed interest rate

The share of loans with fixed interest from banks and mortgage companies to Norwegian households increased from the 4t h quarter of 2008 to the 1s t quarter of 2009. In state lending institutions this share remained unchanged.

Banks, mortgage companies and state lending institutions. Share of fixed interest loans to households. Q1 2004-Q1 2009

The financial enterprises’ share of loans with fixed interest rate of total loans to Norwegian households was 9.2 per cent at the end of the 1s t quarter of 2009. This equals an increase of 2.4 percentage points from the previous quarter. The share of loans with fixed interest rate to households has not been higher since the 2n d quarter of 2006. We estimate that 0.5-1 percentage points of the increase can be explained by changes in one bank’s method of reporting figures for fixed interest rate loans. The bank’s methodical changes have primarily affected figures for loans with a fixed interest rate of less than one year.

Increased share of loans with fixed interest from 1 to 5 years

Statistics for loans with fixed interest rates from financial enterprises were published for the first time in the 1s t quarter of 2004. Since then there has been a declining trend in the share of loans with fixed interest rate. However, in the 1s t quarter of 2009 the financial enterprises’ share of loans with fixed interest rate to households increased for the first time in two years. It should be noted that the share is still considerably lower than five years ago.

In banks and mortgage companies the shares of loans with fixed interest from 1 to 5 years to households increased from 2.6 and 1.7 per cent respectively to 4.1 and 3.4 per cent from the 4t h quarter of 2008 to the 1s t quarter of 2009. Of all the banks and mortgage companies that reported loans with fixed interest from 1 to 5 years to households, the share increased in about 2/3 of the reporting institutions.

Mortgage companies’ share of fixed interest loans to households has decreased more than in other financial enterprises since 2004. The transfer of loan portfolios with floating interest from banks to mortgage companies in the same banking group is a key reason for this. In the 4t h quarter of 2008 and the 1s t quarter of 2009 the share of fixed interest loans from mortgage companies to households increased despite the portfolio movements. Such portfolio movements have become more and more prevalent since the Norwegian government’s first measures to combat the financial crisis.

Fixed interest loans to households from banks, mortgage companies and state lending institutions by fixed interest period. Q1 2004-Q1 2009. 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 2.2 1.4 6.7 9.6 23.6 0.0 33.3 2.5 4.7 0.7 7.9
Q1 2008 1.4 2.5 0.7 4.6 2.3 1.7 2.6 6.6 9.6 22.8 0.0 32.4 2.3 4.5 0.8 7.7
Q2 2008 1.2 2.6 0.7 4.5 1.6 1.3 2.3 5.3 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 0.1 32.8 2.2 4.3 0.9 7.3
Q4 2008 1.1 2.6 0.6 4.4 1.3 1.7 1.8 4.8 7.6 20.1 0.1 27.7 1.8 4.2 0.8 6.7
Q1 2009 2.4 4.1 0.7 7.3 1.4 3.4 1.8 6.6 7.2 20.5 0.1 27.7 2.6 5.6 0.9 9.2

High share of fixed interest for loans to local government

The share of fixed interest loans from financial enterprises to local government increased from 50.2 per cent in the 4t h quarter of 2008 to 53.1 per cent in the 1s t quarter of 2009.

Fixed interest on loans in Norway

Fixed interest rate on loans gives predictability for interest costs, and can be considered as an insurance against increasing interest rates. There are several possible reasons for the traditionally low share of loans with fixed interest in Norway. Among other factors, it could be that borrowers consider fixed interest more of a speculation than insurance. Another reason could be that the Central bank’s projections for the key policy interest rate are clearly communicated to the market.