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/en/bank-og-finansmarked/statistikker/m2/maaned
54120
Still increasing money supply growth
statistikk
2011-06-29T10:00:00.000Z
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, May 2011

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Still increasing money supply growth

The twelve-month growth in total money supply (M2) was 10.1 per cent to end-May, up from 8.9 per cent to end-April. This is the highest registered growth since May 2008.

Money supply (M2) - growth

The total money supply amounted to NOK 1 663 billion by end-May, up from NOK 1 652 billion by end-April.

Strong increase in money supply growth for non-financial enterprises

Non-financial enterprises’ money supply amounted to NOK 554 billion at end-May, up from NOK 544 billion at end-April. The twelve-month growth increased from 10.9 per cent to end-April, to 14.9 per cent to end-May. This is the highest growth in non-financial enterprises’ money supply growth since January 2008. Non-financial enterprises’ money supply constituted about 45 per cent of their gross domestic debt measured by the credit indicator C2 at end-May.

Strong increase also for municipal government

Municipal government’s money supply amounted to NOK 76 billion at end-May, up from NOK 70 billion at end-April. The twelve-month growth increased from 10.7 per cent to end-April to 17.8 per cent to end-May.

Decrease in households’ money supply growth

Households’ money supply constitutes more than half of the total money supply. By end-May it accounted for NOK 868 billion, down from NOK 876 billion the previous month. The twelve-month growth in households’ money supply was 6.1 per cent to end-May, down from 6.3 to end-April.

The growth in households’ money supply was lower than the growth in households’ gross domestic debt, which amounted to 7.0 per cent to end-May, according to the credit indicator C2 . For more information on the financial position of households, see the financial accounts in the national accounts .

Decreasing growth also for other financial enterprises

Other financial enterprises’ money supply amounted to NOK 165 billion at end-May, up from NOK 161 billion at end-April. The twelve-month growth was 13.8 per cent to end-May, down from 16.3 per cent to the previous month.

Monetary aggregates, growth (per cent)
 
  December 2010 January 2011 February 2011 March 2011 April 2011 May 2011
 
M0 - 12 mth. -0.6 8.4 7.5 25.2 -19.3 -8.7
M1 - 12 mth. 6.0 6.1 6.0 7.7 8.0 11.1
M2 - 12 mth. 5.2 6.9 7.4 7.5 8.9 10.1
M2 - 3 mth. moving average1 8.6 9.9 11.5 11.4 12.0  
M2 households - 12 mth. 5.5 5.1 5.2 5.9 6.3 6.1
M2 non-financial enterprises - 12 mth. 5.6 9.0 9.0 8.2 10.9 14.9
 
1  Annualised figure.

Composition of money supply

The broad monetary aggregate M2 amounted to NOK 1 663 billion at end-May, of which the major part, 91 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 6.1 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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