High growth in money supply continues
Banking and financial markets
m2, The money supply M2, money, notes and coins, assetsFinancial indicators, Banking and financial markets

The money supply M2September 2007



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High growth in money supply continues

The twelve-month growth in money supply (M2) was 17.3 per cent to end-September and unchanged from the previous month. This is the highest annual growth since the data series began.

Money supply (M2) - growth

The broad monetary aggregate M2 amounted to NOK 1 375 billion at end-September, of which the major part (about 90 per cent) consisted of bank deposits. In comparison, notes and coins only accounted for 3 per cent of the broad money. The rest of the broad money mainly consisted of shares in money market funds (about 6 per cent), while certificates of deposit accounted for less than 1 per cent.

Increase for other financial enterprises

The twelve-month growth for other financial enterprises (other than state lending institutions, banks and money market funds) was 60.6 per cent in September, up from 40.3 per cent in the previous month. The major part is related to life insurance companies. The money supply of other financial enterprises amounted to NOK 116 billion at end-September.

Continued strong growth for non-financial enterprise and household money supply

Non-financial enterprise money supply amounted to NOK 488 billion at end-September. The twelve-month growth was 23.3 per cent, down from 26.7 per cent in the previous month. Since the beginning of 2006, non-financial enterprises have been the main contributor to the total growth in money supply, accounting for about 45 per cent of this growth at end-September. The strong growth may be related to the rise in production and profitability in business and industry. As described by the credit indicator C2 , the growth in enterprise gross debt was also high (20.1 per cent).

At end-September more than half (NOK 717 billion) of the broad monetary aggregate was owned by households. The twelve-month growth was 9.1 per cent, down from 9.2 per cent in the previous month. The growth in household money supply continued to be still lower than the growth in gross domestic debt (11.8 per cent), as shown by the credit indicator C2 . For more information on the financial position of households, see the financial accounts in the national accounts

Monetary aggregates, growth (per cent)
      July 2007     August 2007     September 2007
M0 - 12 mth 9.9 2.8 -16.0
M1 - 12 mth 18.6 17.1 17.9
M2 - 12 mth 16.9 17.3 17.3
M2 - 3 mth mov.avg.     16.1 19.1  


Since March 2007, the figures have been affected by the implementation of the IFRS, the new international financial reporting standards.

The money supply (broad monetary aggregate) M2 consists of notes and coins, unrestricted bank deposits, certificates of deposit and units in money market funds owned by households, non-financial enterprises, municipalities and financial enterprises other than state lending institutions, banks and money market funds.