Financial corporations, balance sheet, November 2011

Norwegian banks’ stock of treasury bills has reduced from NOK 142.8 billion in November 2010 to NOK 71.8 billion in November 2011. This is a decrease of NOK 71 billion over the past 12 months.

The sharp decrease of 49.7 per cent is most likely linked to the phasing out of the swap arrangement that was introduced in an effort to reduce the negative effects of the financial crisis. During November 2011, the decline was nearly NOK 13.9 billion, or 16.2 per cent.

For further information, see The Norwegian Central Bank’s homepage.

Increase in Norwegian mortgage companies’ emissions of covered bonds

At the end of November 2011, Norwegian mortgage companies had issued covered bonds amounting to nearly NOK 700 billion. Of this, NOK 391 billion was issued in Norway, while the remaining NOK 309 billion was issued abroad. Over the past 12 months, mortgage companies’ emissions of covered bonds have increased by NOK 145 billion, or 26.1 per cent. The growth from October 2011 to November 2011 amounted to NOK 18.1 billion, or 2.7 per cent.

Covered bonds are an important source of funding for Norwegian mortgage companies. Mortgage companies’ covered bond debt as a share of their total assets has remained relatively stable between 41 and 45 per cent in 2011. At the end of November 2011, this share was 44.7 per cent.

Norwegian banks’ stock of covered bonds remains relatively stable

At the end of November 2011, Norwegian banks’ stock of covered bonds amounted to less than NOK 240 billion. A total of 90 per cent of these, or NOK 214.7 billion, were issued by Norwegian mortgage companies, and out of these, 80 per cent were issued by associated mortgage companies or mortgage companies where the bank has full ownership.

Despite a small increase of 0.7 per cent in the banks’ stock of covered bonds in November 2011, the 12-month growth has been negative, with a growth rate of -8.2 per cent.