Monetary aggregates

The money-issuing sector consists of Norges Bank (The central bank of Norway), banks and mortgage companies (MFIs). In the monetary base M0 the money-issuing sector consists of Norges Bank.

The money-neutral sector consists of the central government, state lending institutions etc. and foreign sectors.

The money-holding sector consists of all sectors not included in the money-issuing or money-neutral sector, i.e. the general public (municipalities, non-financial corporations, nonprofit organisations and households) and financial corporations that are not MFIs. 

The monetary base M0 is defined as the sum of Norwegian notes and coins in circulation and the MFIs’ and the money-holding sector's deposits in Norges Bank. 

Narrow money M1 is defined as the money-holding sector's stock of Norwegian banknotes and coins (currency in circulation) and their transaction deposits in Norwegian kroner and foreign currency. Transaction deposits compromise deposits from which, regardless of purpose, payments and withdrawals may be made directly, without additional costs beyond regular transaction fees (overnight deposits).

Intermediate money M2 is defined as the sum of M1 and the money-holding sector's deposits in Norwegian kroner and foreign currency with period of notice up to three months or agreed maturity of up to two years.

Broad money M3 is defined as the sum of M2 and marketable instruments issued by the MFI sector. This includes repurchase agreements and debt securities/bonds with an original maturity of up to two years.

The classification of most financial instruments and sectoral structure used in the monetary aggregates follows the principles of the Monetary and Financial Statistics Manual (MFSM) and the Manual on MFI Balance Sheet Statistics (see coherence with other statistics section).

The monetary aggregates have two different breakdowns; holding sector and money supply object. Holding sector is a breakdown of the money-holding sector, by other financial corporations, non-financial corporations, municipalities and households. Money supply objects are currency in circulation, transaction deposits, other deposits, debt securities and repurchase agreements.

Name: Monetary aggregates
Topic: Banking and financial markets

Division for Financial Markets Statistics

National level.

Monthly. Monetary aggregates are published within one month after the reference period.

Reporting to the International Monetary Fund (IMF) via the Special Data Dissemination Standard (SDDS) and the Bank for International Settlements (BIS).

Collected microdata and published data are stored in databases at Statistics Norway.

Monetary aggregates are used as a basis for monetary policy. The statistics were established by Norges Bank in 1971 and adjusted for IMF standards in the publication of figures for November 2000. Following a review of content and international standards in 2014, the monetary aggregates now include the broad monetary aggregate M3.

Norway takes part in the Special Data Dissemination Standard (SDDS) of the International Monetary Fund (IMF). This standard requires Norway to publish a detailed breakdown of the monetary aggregates.

As of 1 January 2007, most of the work related to collection and release of financial markets statistics were transferred to Statistics Norway from Norges Bank. This included the monetary aggregates statistics.

The main users are monetary policy authorities, i.e. Norges Bank, the Financial Supervisory Authority and the Ministry of Finance. Other users are financial market operators and research institutions as well as students.

No external users have access to the statistics and analyses before they are published and accessible simultaneously for all users on ssb.no at 8 am. Prior to this, a minimum of three months' advance notice is given in the Statistics Release Calendar. For more information, see Principles for equal treatment of users in releasing statistics and analyses.

The statistics are based on the guidelines of the standards System of National Accounts 2008 (SNA 2008) and European System of National Accounts 2010 (ESA 2010), as well as guidelines for money supply statistics in IMF's Monetary and Financial Statistics Manual and Compilation Guide (2016) and the European Central Bank’s Manual on MFI Balance Sheet Statistics (2019).

The data sources of the monetary aggregates are the same as for the Financial corporations, balance sheet statistics. Data on debt securities are collected from the Norwegian Central Securities Depository (VPS); the same source used in the Securities statistics.

Not relevant.

 Derived statistics, without direct Council Directives or Council Regulations from the EU.

The statistics consist of the monetary aggregates M1, M2 and M3. See the section on definitions for further information. The money-issuing sector consists of Norges Bank, banks and mortgage companies (MFIs). In the monetary base M0, the money-issuing sector consists of Norges Bank.

Data for the money-issuing sector are derived from the accounting statistics of ORBOF (Reporting of banks, mortgage companies, state lending institutions and finance companies’ accounts to the public authorities). Data for issued debt securities are derived from statistics for securities registered with the Norwegian Central Securities Depository (VPS). Exchange rate adjustments are calculated using the official exchange rates from Norges Bank and information on the currency composition of the money-holding sector’s deposits in banks from the BIS survey (report 13). Shares of deposits in foreign currency to calculate valuation changes are updated quarterly.

The statistics have a full census.

From 2007, collecting accounting data for banks and financial corporations has been the responsibility of Statistics Norway. Editing of data are undertaken by Statistics Norway and the Financial Supervisory Authority. The editing policy is to publish corrections of the previous month’s data together with the current month’s data. With every release, the latest 25 periods of stock data and 13 periods of transaction and growth data are updated. Statistics Norway is fully prepared to edit in a timely manner, with appropriate notification to users and the media, should it be deemed necessary by the magnitude of a past error, or, owing to other exceptional circumstances. Some of the reported data may contain preliminary data that are subsequently corrected. Statistics Norway monitors and analyses the data, and editing are conducted regularly.

The main focus in the statistics is transaction-based changes. In growth calculations that include deposits in foreign currency, the transaction and growth rates are adjusted for changes in exchange rates. Growth calculations are also adjusted for structural breaks. These adjustments will lead to discrepancies between growth calculations based on stocks and growth calculations based on transactions. Revisions in accounting standards and changes in accounting legislation may also lead to breaks in the time series.

The seasonal adjustment of monetary aggregate stocks is carried out using the X12 Arima method. Seasonal components are recalculated with each publication and seasonally adjusted stocks, as well as monthly transactions and growth rates are updated.  Only the broad money supply (M3) is seasonally adjusted. For this aggregate, seasonally adjusted series are released by money-holding sector, households, non-financial corporations, municipalities and other financial corporations.

Not relevant

Revisions in international standards and major changes in fiscal legislation can lead to breaks in the time series. The same consequences can result from sectoral shifts. Transactions and growth estimates are adjusted for breaks in time series (see the section on data collection, revision and estimations).

Change in the statistics on banks and mortgage companies in 2018

The adjustment of ORBOF to IFRS has led to a change in the statistics on banks and mortgage companies from January 2018. An important implication for the money supply is that accrued interests and changes in value are included with the underlying financial object. As of January 2018, the stock time series are not comparable with previous periods. Transaction and growth series are corrected for this break.

Change in the monetary aggregate statistics in 2015

The stock series, transactions and growth rates in the money supply changed as a result of the change in the monetary aggregate statistics in 2015. In the new money supply statistics framework, M3 is included as the main aggregate in the money supply. M1 and M2 are continued as subsets.

As of April 2015, new deposit specifications were introduced in the balance sheet reporting. This lead to a break in the stock time series involving deposits. The monetary aggregate statistics time series from the periods prior to April 2015 are therefore not comparable with later periods. Transaction and growth series are corrected for this break. Growth series are thus comparable back to January 2009.

New institutional sector classification in 2012

As from January 2012, the Norwegian institutional sector classification has been revised in line with the international classification. This change implies a break in stock time series between February and March 2012.

The statistics are mainly derived from the financial markets statistics. Errors and inconsistencies in these statistics will also affect the monetary aggregates. In this context, we refer to the sections on sources of error and uncertainty in these statistics.

For the monetary aggregates, the response rate is 100 per cent, and variance and bias are not relevant.

The statistics show preliminary figures. Data may be revised in future publications. At each publication, stock time series are updated with the latest 25 periods. Transactions and growth are updated for 13 periods.