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4481
Covered bonds increase sharply
statistikk
2009-08-07T10:00:00.000Z
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 sheetJune 2009

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

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Covered bonds increase sharply

The Norwegian banks’ stock of Norwegian treasury bills has increased sharply. By end-June it was more than four times as high as by end-December 2008. This is a consequence of the offer made by the Norwegian government to exchange treasury bills with covered bonds owned by the banks.

The banks’ stock of Norwegian treasury bonds increased by 22.5 per cent during June and amounted to NOK 108 billion by the end of the month. The Norwegian banks’ stock of covered bonds amounted to NOK 1 146 billion at end-June. This is an increase of more than 200 per cent since the beginning of this year.

Sharp increase in Norwegian mortgage companies’ emissions of covered bonds

Norwegian mortgage companies had issued covered bonds amounting to NOK 1 302 billion at end-June. From the beginning of this year to end-June the debt caused by covered bonds increased by 1 55 per cent. The monthly growth rate was in June 1 13.2 per cent. This is the largest monthly growth rate since the registration of the emissions of covered bonds from Norwegian mortgage companies started in December 2008.

The sharp increase in the Norwegian banks’ stock of treasury bills and the mortgage companies’ emissions of covered bonds are related to the “swap agreement” between the Norwegian government and the banks.

Banks’ stock of treasury bills and covered bonds. NOK million

The Norwegian governments’ first offer for the financial sector

24t h of October 2008, the Norwegian Parliament gave the Ministry of Finance authority to put into effect an arrangement where Norwegian banks could “swap” covered bonds with treasury bills. This “swap agreement” was an effort to reduce the negative effects of the financial crisis. The banks can acquire covered bonds either in the market or directly from mortgage companies that are licensed to issue covered bonds. After the announcement of this offer from the Norwegian government a number of new mortgage companies have been established. As a result, lending portfolios have been swapped between banks and mortgage companies.

Treasury bills and covered bonds. December 2008-June 2009. NOK million and monthly growth (The figures are corrected 13 August 2009)
  Mortgage companys'
emission of
covered bonds
Monthly growth.
Per cent
Banks' stock
of covered bonds
Monthly growth.
Per cent
Banks' stock
of treasury bills
Monthly growth.
Per cent
December 2008  195 014 - 46 165 - 26 293  300.3
January 2009  213 943 9,7 77 076 67.0 52 461 99.5
February 2009  227 208 6.2 89 379 16.0 49 533 -5.6
March 2009  249 239 9.7  117 506 31.5 52 153 5.3
April 2009  250 204 0.4  117 537 0.0 67 917 30.2
May 2009  266 869 6.7  121 207 3.1 88 312 30.0
June 2009  302 205 13.2  146 427 20.8  108 183 22.5

The Norwegian governments “swap agreement”, where banks can exchange covered bonds with treasury bills has a ceiling of NOK 350 billion. Because the banks are free to resell the treasury bills they have acquired through this arrangement, the increase in the stock of treasury bills does not fully reflect the total amounts involved in the arrangement.

Covered bonds are bonds conferring a preferential claim over a cover pool consisting of public sector loans and loans secured on residential property and other real property.

1  The figure is corrected 13 August 2009.