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54264
Decreasing funding from the money market
statistikk
2011-08-11T10:00:00.000Z
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, June 2011

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

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Decreasing funding from the money market

About 43 per cent of Norwegian banks’ funding takes place in the money market, mainly from foreign sources. The twelve-month growth in the funding from the money market went down from -13.1 per cent to -20.5 per cent in June.

Banks. Different funding sources. June 2007 - June 2011. NOK million

Banks finance their operations from different sources, such as deposits, inter-bank loans, bond loans, short-term security loans and loans from Norges Bank. Customer deposits are often the safest, least expensive and most stable of these sources. At end-June the deposits amounted to NOK 1 674 billion, up from NOK 1 654 last month. The rest of the funding sources comes from the market and went down from NOK 1 360 billion to NOK 1 250 billion in the same period.

Most of the funding from the market stems from foreign sources

The banks’ short-term security loans, bond loans and inter-bank loans from foreign sources constituted more than 73 per cent of the total funding from the market at end-June 2011. This share has been relatively stable and above 70 per cent during the past three years. Because of the high level, the Norwegian banks are directly affected by the situation in the international credit markets.

Decreasing inter-bank loans from the foreign market

Total inter-bank loans amounted to NOK 686 billion at end-June, and are thereby the biggest source of funding from the market. The twelve-month growth to end-June was -20.2 per cent.

Inter-bank loans from foreign banks constituted close to 92 per cent of total inter-bank loans at end-June. The twelve-month growth from these banks went down from -12.0 per cent to -21.5 per cent in June. At the end of 2010 Sweden was the biggest counterpart of inter-bank loans with more than one third of the foreign inter-bank loans. Other important counterparts were Denmark, Finland and USA, each with more than 10 per cent of foreign inter-bank loans.

Foreign bond debt also decreases

Bond loans are an important long-term funding source for the banks, and amounted to NOK 424 billion at end-June. The twelve-month growth was -11.1 per cent to end-June, down from

-9.2 per cent last month. This is the lowest growth since June last year, and the decrease stems from foreign sources.

Bond debt to foreign sectors amounted to NOK 181 billion, or close to 43 per cent, of the total bond debt at end-June. As a comparison this share was almost 47 per cent at end-June last year. The twelve-month growth for the banks’ foreign bond debt was -19,8 per cent at end-June 2011, considerably lower than the twelve-month growth for Norwegian and foreign bond loans together.

Low share of short-term security loans from Norwegian sectors

The banks’ short-term security loans were NOK 117 billion at end-June. The twelve-month growth is thus -16.4 per cent, and fluctuates from month to month.

Short-term security debt to Norwegian sectors accounted for 8.5 per cent of total short-term security debt at end-June. This amounts to NOK 9.9 billion.

Fluctuations in F-loans from Norges Bank

F-loans amounted to NOK 22 billion at end-June, and this is 1.8 per cent of the banks’ total market funding. This share has fluctuated between 1.6 and 8.6 per cent for the past two years.

Banks. Different credit sources. Norwegian vs. Foreign sectors. June 2010-June 2011. NOK million
 
  Inter-bank loans from Norwegian banks Inter-bank loans from foreign banks Norwegian bond loans Foreign bond loans Norwegian short-term security loans Foreign short term security loans F-loans from Norges Bank
 
2010              
June 55 961  802 724  251 222  225 378 13 009  126 627 96 820
July 50 553  742 747  251 956  222 027 13 125  121 262 88 821
August 58 448  677 931  254 254  227 000 13 608  123 600 83 821
September 48 781  666 818  257 379  207 652 15 183  101 870 86 819
October 72 515  666 908  257 242  215 529 13 947  105 435 33 805
November 53 638  682 858  258 550  205 153 13 906  114 008 55 447
December 51 723  679 961  255 708  197 135 12 489 92 336 58 674
2011              
January 55 834  710 244  254 551  197 804 11 921  100 199 22 023
February 64 939  659 345  253 197  204 989 11 087  102 043 37 022
March 55 384  684 004  252 601  202 796 9 493  106 422 52 021
April 56 702  641 032  246 577  178 358 9 577  113 000 52 021
May 50 805  711 229  243 750  179 639 8 093  109 179 57 275
June 55 736  629 828  244 967  180 714 9 883  106 863 22 022
 

F-loans from Norges Bank are a part of the liquidity supply to the banks. They are loans with collateral in securities at a fixed exchange rate and given terms. The terms for these loans have normally been under a week, but due to the turbulence in the financial markets, Norges Bank enabled loans of up to two years.

 

As a large part of the foreign funding is in foreign currency, changes in exchange rates may therefore influence the figures.

 

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