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/en/bank-og-finansmarked/statistikker/m2/maaned
54118
Strong increase in money supply growth
statistikk
2011-05-31T10:00:00.000Z
Banking and financial markets
en
m2, The money supply M2, money, notes and coins, assetsFinancial indicators, Banking and financial markets
false

The money supply M2, April 2011

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Strong increase in money supply growth

The twelve-month growth in total money supply (M2) was 7.8 per cent to end-April, up from 6.4 per cent to end-March. This is the highest registered growth since August 2008. Households and enterprises contributed to the rise.

Money supply (M2) - growth

The total money supply amounted to NOK 1 634 billion by end-April, up from NOK 1 620 billion by end-March.

Households’ money supply still growing

Households’ money supply constitutes more than a half of the total money supply. By end-April it accounted for NOK 876 billion, up from NOK 871 billion the previous month. The twelve-month growth in households’ money supply was 6.3 per cent to end-April. This is an increase from 5.8 per cent to end-March, and the highest twelve-month growth since May 2009. The growth in households’ money supply was lower than the growth in households’ gross domestic debt, which amounted to 6.8 per cent to end-April, according to the credit indicator C2 . For more information on the financial position of households, see the financial accounts in the national accounts .

Strong growth for other financial enterprises

Other financial enterprises’ money supply amounted to NOK 145 billion at end-April, up from NOK 140 billion at end-March. The twelve-month growth was 4.8 per cent to end-April, up from -2.9 per cent to the previous month.

Increase in money supply growth also for non-financial enterprises

Non-financial enterprises’ money supply amounted to NOK 543 billion at end-April, up from NOK 542 billion at end-March. The twelve-month growth increased from 8.1 per cent to end-March, to 10.7 per cent to end-April. Non-financial enterprises’ money supply constituted about 45 per cent of their gross domestic debt measured by the credit indicator C2 at end-April.

Decrease in growth for municipal government’s money supply

Municipal government’s money supply amounted to a modest NOK 70 billion at end-April, up from NOK 67 billion at end-March. The twelve-month growth fell from a higher level of 23.9 per cent to end-March to 10.6 per cent to end-April.

Monetary aggregates, growth (per cent)
 
  November 2010 December 2010 January 2010 February 2011 March 2011 April 2011
 
M0 - 12 mth. 11.9 -0.6 8.4 7.5 25.2 -19.3
M1 - 12 mth. 5.0 6.0 6.2 6.1 7.8 8.1
M2 - 12 mth. 5.7 5.2 6.5 6.6 6.4 7.8
M2 - 3 mth. moving average1 6.5 8.1 8.4 8.5 7.9  
M2 households - 12 mth. 5.4 5.5 5.0 5.1 5.8 6.3
M2 non-financial enterprises - 12 mth. 5.4 5.6 8.9 8.9 8.1 10.7
 
1  Annualised figure.

Composition of money supply

The broad monetary aggregate M2 amounted to NOK 1 634 billion at end-April, of which the major part, close to 92 per cent, consisted of bank deposits. In comparison, notes and coins only accounted for 2.7 per cent. The rest of the broad monetary aggregate mainly consisted of shares in money market funds and certificates of deposits, which accounted for 5.2 and 0.1 per cent respectively.

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 the money-holding sector, i.e. households, non-financial enterprises, municipalities and financial enterprises other than state lending institutions, banks and money market funds.

 

The base money (M0) is defined as banks’ and the money-holding sector's notes and coins and deposits in Norges Bank. Banks’ deposits in Norges Bank comprise current account (sight) deposits and fixed rate (time) deposits (F-deposits), from Norges Bank’s monthly balance sheet.

 

Other financial enterprises include financial enterprises other than lending institutions, banks and money market funds.

Growth based on the three-month moving average is defined as growth in average money supply (seasonally-adjusted figures) in the latest three-month period in relation to the previous three-month period. The growth is adjusted for exchange rate valuation changes and statistical breaks as an annualised figure. The calculation is centred; in other words, the observation is set at the middle month of the latest three-month period.

 

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