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4495
Increase in short term funding
statistikk
2009-01-09T10:00:00.000Z
Banking and financial markets
en
orbofbm, Financial corporations, balance sheet, banks, mortgage companies, finance companies, state lending institutions, loans, deposits, financing, mortgages, bonds, commercial papers, shares, ownership interest, assets, liabilities, foreign banks, borrowers, balancesFinancial institutions and other financial corporations, Banking and financial markets
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Financial corporations, balance sheet, November 2008

As from 2016 the statistics is published with Banks and mortgage companies.

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Increase in short term funding

Figures for November 2008 show that Norwegian banks decrease their share of long term funding, such as deposits and bond debt. This implies an increase in the share of short term funding, such as interbank loans and short-term security debt.

Banks. Funding sources as shares of total funding. Nov 2002-nov 2008.

Banks. Different funding sources. Nov 2002-nov 2008.

The share of interbank loans of total funding increased from 26.2 per cent in end-October to 27.8 per cent in end-November. This share was, for comparison only 13.7 per cent in end-November 1998. Interbank loans increased from 803 billions to 869.7 billions from October to November. This equals a monthly growth rate of 8.3 per cent. From August 2008 to November 2008 interbank loans have increased with over 21 per cent. A large share of this increase can be explained by the depreciation of NOK against Euro and USD in this period. The main message is however that the importance of interbank loans as source of funding is increasing.

The largest part of interbank loans is foreign. Norwegian bank’s foreign interbank debt amounted to a total of NOK 805.1 billions by end-November. This constitutes to over 92 per cent of Norwegian banks total interbank debt. Note that the dominance of foreign interbank loans is largely due to loans from parent company to foreign owned banks operating in Norway.

Stable share of bond debt and short-term security debt

Bond debt and short-term security debt have had quite stable shares of the total funding of Norwegian banks over time. By end-November the shares were 18.1 per cent and 4.6 per cent respectively. These shares were 16.5 per cent and 6.3 per cent in the end of November 1998.

The central bank of Norway contributes with long term funding

Loans in the central bank of Norway have normally had terms of a week or less. In the end of November the central bank offered F-loans with terms up to two years. This was an attempt to contribute with long-term funding in Norwegian financial markets.

Decreased share of deposits

Deposits are the largest share of the banks funding. The share has however declined over time. Deposits share of the banks total funding was 46.8 per cent at end-November. This means that the share decreased 1.4 percentage points from the month before. The share was 62.1 per cent at end-November 1998.