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54270
Higher share of foreign market funding
statistikk
2011-11-07T10:00:00.000Z
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
false

Financial corporations, balance sheet, September 2011

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

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Higher share of foreign market funding

An increasing share of banks’ total money market funding stems from foreign sources. The increase is mainly due to increased inter-bank loans between Norwegian and foreign banks.

Banks. Share of foreign money market funding. September 2008-September 2011. Per cent

By the end of September 2011, the banks’ total money market funding from foreign sources was nearly NOK 1 053 billion, which constitutes 76.1 per cent of banks’ total market funding. This is an increase of 1.2 percentage points from the previous month, and is the highest share of foreign money market funding since March 2007.

Increase caused by inter-bank loans

More than 50 per cent of the banks’ money market funding is foreign inter-bank loans, and these loans amounted to NOK 749.7 billion at end-September 2011. This is an increase of NOK 642 million compared to the previous month, which equals an increase of 9.4 per cent. Inter-bank loans between Norwegian banks constitute 3.9 per cent in the same period. The share of Norwegian inter-bank loans has been relatively stable the last two years, varying between 3 and 5 per cent.

The twelve-month growth rate in foreign inter-bank loans is 12.4 per cent in September this year. This is the highest twelve-month growth rate since June 2010. Foreign funding mainly consists of loans in foreign currencies which are converted into NOK, and may therefore be affected by changes in the exchange rates.

Banks. Sources of money market funding. September 2008-September 2011. NOK billion.

Short-term security loans nearly unchanged

In addition to inter-bank loans, the banks’ money market funding consists of short-term security loans, bond loans and F-loans from the Norwegian central bank. By end-September this year, short-term security loans amounted to NOK 133 billion; a share of 9.6 per cent of total funding. This is a marginal increase of 0.2 percentage points compared to the August 2011 figures. Foreign short-term security loans dominate; Norwegian short-term security loans stand for just 0.9 per cent of total money market funding.

Bond loans amounted to nearly NOK 425 billion by the end of September 2011; a share of 30.7 per cent of total money market funding. This is a decrease of 1.9 percentage points compared to the previous month, and the lowest share of bond loans in funding since June 2010. F-loans from the central bank amounted to NOK 22 billion at end-September 2011, and remained unchanged the previous four months.

Increased customer deposits

The banks finance their lending through customer deposits in addition to the money market funding. These customer deposits amounted to NOK 2 542 billion at the end of September 2011; an increase of NOK 115 billion compared to the previous month. This equals a share of 65.8 per cent of the banks’ total funding.

Banks. Sources of money market funding. Norwegian vs. foreign sectors. September 2010-September 2011. NOK million
 
  Inter-bank
loans from
Norwegian banks		 Inter-bank
loans from
foreign banks		 Norwegian
short term
security loans		 Foreign
short term
security loans		 Norwegian
bond loans		 Foreign
bond loans		    F-loans from
Norges Bank
 
2010              
September 4 878  666 818 15 183  101 870      257 379      207 652 86 819
October 72 515  666 908 13 947  105 435  257 242  215 529 33 805
November 53 638  682 858 13 906  114 008  258 550  205 153 55 447
December 51 723  679 961 12 489 92 336  255 708  197 135 58 674
               
2011              
January 55 834  710 244 11 921  100 199  254 551  197 804 22 023
February 64 939  659 345 11 087  102 043  253 197  204 989 37 022
March 55 384  684 004 9 493  106 422  252 601  204 809 52 021
April 56 702  641 032 9 577  113 000  246 577  180 371 52 021
May 50 805  711 229 8 093  109 179  243 750  181 653 57 275
June 55 736  629 828 9 883  106 863  244 967  180 714 22 022
July 57 432  692 863 10 186  104 622  244 835  181 426 22 023
August 50 639  685 430 11 624  111 862  244 371  181 510 22 020
September 53 686  749 673 12 365  120 948  242 513  182 101 22 021
 

Money market funding is defined by the sum of inter-bank loans, short-term security loans, bond loans and F-loans from the central bank. In addition to the market funding, banks finance their lending through customer deposits.

 

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.

 

Inter - bank loans are short-term loans between banks. It should be noted that a certain share of foreign inter-bank loans to Norwegian banks could originate from loans from a foreign parent company to Norwegian branch companies.

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

 

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