Interest rate margins continue to fall
After a fall in the two previous quarters, banks’ interest rate margin and the interest rate on total loans from financial corporations to households fell by a further 0.03 percentage points in the 1st quarter of 2014. The interest rate on loans to non-financial private companies was more or less stable.
|1st quarter 2014||4th quarter 2013|
|1Due to changes in specifications applied from 3rd quarter 2013, the time series are not directly comparable to previous periods.|
|Interest rates including commissions on loans|
|State lending institutions||2.52||2.49|
|Life insurance companies||3.27||3.47|
|Financial corporations, total||4.14||4.16|
|The Norwegian Public Service Pension Fund||2.75||2.25|
|Interest rates on deposits|
|Banks and mortgage companies. Loans margin||2.52||2.59|
|Banks. Interest rate margin||2.48||2.51|
|Banks. Deposits margin||-0.47||-0.51|
The interest rate on repayment loans with home mortgages and credit lines secured on dwellings from banks and mortgage companies fell by 0.03 and 0.02 percentage points in the 1st quarter of 2014 to 4.09 and 4.06 per cent respectively. The loan margin on repayment loans with home mortgages and credit lines secured on dwellings fell by 0.07 and 0.06 percentage points respectively.
Lower interest rates on loans from banks and mortgage companies
After a fall in the two previous quarters, the interest rate on loans from banks and mortgage companies fell by a further 0.02 percentage points to 4.29 per cent in the first quarter of 2014. The banks’ interest rate on deposits was 2.24 per cent at the end of the 1st quarter of 2014; approximately unchanged compared to the previous quarter.
Increased interest rates on loans from state lending institutions
The interest rate on loans from state lending institutions (including loans with zero interest rates in the Norwegian State Educational Loan Fund) increased by 0.03 percentage points to 2.52 per cent in the first quarter of 2014. The interest rate on loans from The Norwegian Public Service Pension Fund increased by 0.5 percentage points to 2.75 per cent in this period. The interest rate on loans from life insurance companies fell by 0.20 percentage points to 3.27 per cent.
At the end of the 1st quarter of 2014, the interest rate statistics included data from 135 banks, 26 mortgage companies, 3 state lending institutions, 5 life insurance companies and the Norwegian Public Service Pension Fund. The share of loans from banks, mortgage companies, state lending institutions, life insurance companies and the Norwegian Public Service Pension Fund was 51, 38, 8, 1 and 2 per cent of total loans respectively.
The interest rates on loans from the state lending institutions are determined on the basis of the interest rates on treasury bills and government bonds.