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/en/bank-og-finansmarked/statistikker/orbofur/kvartal
4875
Marginal increase in share of fixed interest
statistikk
2009-11-25T10:00:00.000Z
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, Q3 2009

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Marginal increase in share of fixed interest

The share of loans with fixed interest from financial corporations to Norwegian households increased by 0.2 percentage points to 9.9 per cent in the 3rd quarter of 2009. The share of loans with fixed interest for more than five years is still low.

From 2004 to the end of 2008 there has been a declining trend in the share of loans with fixed interest from financial corporations to households. Figures for the 1st, 2nd and 3 rd quarters of 2009 indicate that this trend may be about to change. The share of loans with fixed interest from financial corporations to households is now 9.9 per cent, and is at its highest level since the 1st quarter of 2006. For comparison, the share of loans with fixed interest to households was at its lowest level at the end of 2008, with 6.7 per cent.

Banks, mortgage companies and state lending institutions. Share of fixed interest loans to households. Q1 2004-Q3 2009

Low demand for loans with fixed interest for more than 5 years

The share of loans with fixed interest for more than 5 years remained low in the 3 rd quarter of 2009. Only 0.9 per cent of loans from financial institutions to households are reported to have this agreement. The share of loans to households, with fixed interest for more than 5 years, has remained relatively stable at just under 1 per cent throughout the history of these statistics.

Figures indicate that households prefer to fix the interest rate for an interval of 1-5 years. In state lending institutions this share increased by NOK 7 billion from the 2nd to the 3 rd quarter of 2009. This equals an increase from 26.4 per cent to 30.2 per cent in this period. In banks and mortgage companies the shares of loans with fixed interest in the interval 1-5 years to households increased from 4.3 and 3.5 per cent respectively to 4.5 and 3.7 per cent from the 2nd to the 3 rd quarter of 2009.

Considerable increase in the share of fixed interest loans from state lending institutions

The share of loans with fixed interest from state lending institutions to Norwegian households increased to 33 per cent in the 3 rd quarter of 2009. Despite the increase this share is still considerably lower than 4-5 years ago.

The share of fixed interest loans from banks to households increased from 7.5 per cent by the end of the 2nd quarter to 7.7 per cent in the 3 rd quarter. The corresponding share in mortgage companies decreased by 0.2 percentage points to 6.4 per cent in the same period. The high share of fixed interest loans in state lending institutions compared to other financial institutions can be due to differences in the supply of loans. Many banks and mortgage companies offer credit lines and short-term repayment loans where it is not possible to fix the interest rate.

Fixed interest loans to households from banks, mortgage companies and state lending institutions by fixed interest period. Share of total loans. Q1 2004-Q3 2009
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 8.9 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 7.2 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 16.8 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 2.0 8.3 3.9 30.5 0.0 34.3 1.9 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
Q2 2009 2.5 4.3 0.7 7.5 1.2 3.5 1.9 6.6 4.8 26.4 0.1 31.3 2.4 6.3 0.9 9.7
Q3 2009 2.5 4.5 0.7 7.7 1.2 3.7 1.6 6.4 2.7 30.2 0.1 33.0 2.2 6.8 0.9 9.9

Fixed interest on loans in Norway

Fixed interest rate on loans gives predictability for interest costs, and can be regarded 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.