4395_not-searchable
/en/bank-og-finansmarked/statistikker/m2/maaned
4395
Record circulation of notes and coins
statistikk
2008-01-31T10:00:00.000Z
Banking and financial markets
en
m2, The money supply M2, money, notes and coins, assetsFinancial indicators, Banking and financial markets
false

The money supply M2December 2007

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Record circulation of notes and coins

The broad monetary aggregate M2 amounted to NOK 1 437 billion at the end of 2007, following an increase in annual growth from 15.6 per cent to 16.6 per cent in December. Notes and coins in circulation amounted to NOK 56 billion at end-December, the highest ever recorded.

Money supply (M2) - growth

The main contributor to the high growth in money supply was “other financial enterprises”. The money supply of these enterprises amounted to NOK 131 billion at end-December. The twelve-month growth was a strong 48.3 per cent, up from 39.0 per cent to the previous month.

Higher growth in household money supply

At end-December more than half (NOK 731 billion) of the broad monetary aggregate was owned by households. The 10.4 per cent twelve-month was an increase from 9.2 per cent to the previous month. The growth in household money supply continued to be lower than the growth in gross domestic debt (11.3 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 .

Lower growth in non-financial enterprise money supply

Non-financial enterprise money supply amounted to NOK 518 billion at end-December. The twelve-month growth was 21.2 per cent, down from 22.3 per cent to the previous month. Since the beginning of 2006, non-financial enterprises have been the main contributor to the annual growth in money supply, accounting for about 44 per cent of this growth to end-December. 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 (21.6 per cent).

Monetary aggregates, growth (per cent)
  October 2007 November 2007 December 2007
M0 - 12 mth 36.8 3.3 38.4
M1 - 12 mth 17.5 14.0 12.5
M2 - 12 mth 17.9 15.6 16.7
M2 - 3 mth mov.avg. 15.6 13.8  

Composition of money supply

The broad monetary aggregate M2 amounted to NOK 1 437 billion at end-December, of which the major part (89 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 (6 per cent), while certificates of deposits accounted for 2 per cent.

Revisions

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

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.