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4473
Decreasing growth in treasury bills
statistikk
2009-12-04T10:00:00.000Z
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
false

Financial corporations, balance sheet, October 2009

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

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Decreasing growth in treasury bills

After several periods of growth in Norwegian banks' stock of Norwegian treasury bills, the growth has decreased considerably during October. This could be related to the announced closure of the "swap arrangement from", where Norwegian banks can exchange covered bonds with treasury bills.

Treasury bills and mortgage companies' emissions of covered bonds. Monthly growth

The banks' stock of Norwegian treasury bills amounted to NOK 195 billion by end-October. This is an increase of NOK 11.8 billion, or 6.4 per cent, compared to end-September. The growth has decreased 14.3 percentage points since last month, and is the lowest monthly growth since March this year.

Reduced growth in covered bonds

Norwegian mortgage companies had issued covered bonds for almost NOK 364 billion by end-October. This is an increase of less than 1 per cent since end-September. Since the registration of covered bonds started in December last year, this is the lowest growth during one month except from April.

Norwegian banks' stock of covered bonds amounted to slightly more than NOK 192 billion by end-October, and has also grown by less than 1 per cent during October. As for the mortgage companies, this is the lowest monthly growth except from April.

The previous strong growth in Norwegian banks' stock of treasury bills and mortgage companies’ emission of covered bonds is related to the "swap agreement" between the Norwegian government and the banks, where banks can exchange covered bonds with treasury bills. The Norwegian banks’ stock of treasury bills has increased by more than NOK 192 billion since end-October last year. 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.

Closure of new "swap agreements" from December 2009

On 24 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 arrangement" 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. Since the announcement of this offer by 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.

Norges Bank manages the "swap arrangement" and has announced closure of new agreements from December 2009.

Covered bonds and treasury bills. April 2009-October2009. NOK million and monthly growth
  Mortgage
companies'
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
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  302 605 13.4  146 405 20.8  108 183 22.5
July 2009  320 523 5.9  165 586 13.1  132 443 22.4
August 2009  344 142 7.4  181 491 9.6  151 764 14.6
September 2009  360 567 4.8  190 537 5.0  183 182 20.7
October 2009  363 854 0.9  192 102 0.8  194 980 6.4

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.