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Share of fixed interest rate loans still rising
statistikk
2013-02-21T10:00:00.000Z
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 2012

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Share of fixed interest rate loans still rising

The share of loans with a fixed interest rate from financial corporations to Norwegian employees increased from the 3rd to the 4th quarter of 2012; the highest level since 2005. There was also an increase in the share of fixed interest rate loans in the six previous quarters.

Fixed interest loans to employees, share of total loans in per centPublished 21 February 2013
4th quarter 20123rd quarter 20122nd quarter 20121st quarter 20124th quarter 2011
Total
No fixed interest rate89.389.990.290.391.4
Loans with a fixed interest rate10.710.29.89.78.6
Less than 1 year0.80.90.91.11.9
From 1 to 5 years8.27.57.37.05.4
Over 5 years1.81.91.51.71.3
Banks
No fixed interest rate89.990.591.191.492.7
Loans with a fixed interest rate10.19.58.98.67.3
Less than 1 year0.91.11.01.21.9
From 1 to 5 years7.86.76.75.84.3
Over 5 years1.41.81.21.61.2
Mortgage companies
No fixed interest rate91.992.792.892.994.0
Loans with a fixed interest rate8.17.37.27.16.0
Less than 1 year0.40.30.40.41.1
From 1 to 5 years6.15.55.45.33.7
Over 5 years1.61.51.51.41.2
State lending institutions
No fixed interest rate67.666.868.266.266.9
Loans with a fixed interest rate32.433.231.833.833.1
Less than 1 year2.12.23.64.96.9
From 1 to 5 years25.125.824.325.022.7
Over 5 years5.15.13.93.93.5

Source: Statistics Norway

The share of fixed interest rate loans to Norwegian employees from financial corporations increased from 10.1 per cent in the 3rd quarter to 10.7 per cent at the end of the 4th quarter of 2012.

Increased share of fixed interest rate loans in banks and mortgage companies

The share of loans with a fixed interest rate from banks to Norwegian employees increased from 9.5 per cent at the end of the 3rd quarter of 2012 to 10.1 per cent at the end of the 4th quarter of 2012. The share of fixed interest rate loans from mortgage companies to Norwegian employees increased by 0.8 percentage point to 8.1 per cent in the same period.

Lower share of fixed interest loans in state lending institutions

The share of fixed interest rate loans from state lending institutions to employees fell by 0.8 percentage points to 32.4 per cent at the end of the 4th quarter of 2012. This happened after an increase of 1.3 percentage points in the previous quarter.

Fixed interest loans in NorwayOpen and readClose

Fixed interest rate loans give 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 inNorway. It may be that borrowers consider fixed interest more of a speculation than insurance. Another explanation for the low share of fixed interest loans may be that the Central bank’s projections for the key policy interest rate are clearly communicated.

DefinitionsOpen and readClose

Data in this statistics refers to total loans in Norwegian kroner and foreign currencies to residents and non-residents by remaining maturity. According to “the law of financial agreements § 50” changes in interest rates should be announced 6 weeks before implemented. Hence loans with 6 weeks interest rate fixation are defined as loans with floating interest rates.