High deposit-loan ratio in Norwegian banks
Banking and financial markets
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

Financial corporations, balance sheetNovember 2012

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



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High deposit-loan ratio in Norwegian banks

Norwegian banks' deposit-loan ratio fell by 0.6 percentage points from October to November 2012. The deposit-loan ratio has been stable at around 82 per cent in all previous months in 2012.

Norwegian banks' deposit-loan ratio was 82.2 per cent at end-November 2012. This is an increase of 4.1 percentage points from November 2011. Deposits from customers increased by 5.4 per cent during the same period and amounted to NOK 1 802 billion at end-November 2012. Loans from banks were almost unchanged during this twelve-month period, and amounted to NOK 2 191 billion at the end of November 2012.

Loan portfolio movements

Transfers of loans secured on dwellings from banks to mortgage companies issuing covered bonds can contribute to an increased deposit-loan ratio in banks. The deposit-loan ratio in Norwegian banks rose by 19.6 percentage points from November 2008 to November 2012.

The banks' customer deposits as a share of total loans to customers from banks and mortgage companies issuing covered bonds were 56.2 per cent at end-November 2012.

Increasing share of customer deposits in bank funding

Banks finance their operations through different sources of credit, such as deposits, inter-bank loans, bond debt, short-term security loans and loans from the Norwegian Central Bank. Customer deposits are often regarded as the most stable of these funding sources. At end-November 2012 customer deposits in Norwegian banks corresponded to 52.5 per cent of total funding. Compared to November 2011 this is an increase of 1.5 percentage points, and compared to November 2008 an increase of 7.5 percentage points.


Banks and mortgage companies issuing covered bonds. Deposits,loans and deposit-loan ratio to customers. November 2011-november 2012. NOK million and per cent
 Deposits  Loans from banksLoans from banks
and mortgage
companies issuing
covered bonds
ratio banks
ratio banks
and mortgage
companies issuing
covered bonds
November1 801 1542 191 7113 204 98282.256.2
October1 805 8532 181 6283 190 76882.856.6
September1 784 6372 171 9053 178 47682.256.1
August1 784 5302 182 6373 168 81781.856.3
July1 789 9352 191 7123 165 51181.756.5
June1 817 6072 189 7743 156 93183.057.6
May1 715 8122 188 5783 146 67778.454.5
April1 757 1342 166 9233 115 77281.156.4
March1 780 7952 163 9003 102 13982.357.4
February1 754 0152 167 7643 083 68280.956.9
January1 748 4982 190 7523 083 04179.856.7
December1 728 0652 185 4813 068 32779.156.3
November1 708 6502 188 8413 056 96478.155.9


The deposit-loan ratio is the amount of a bank's loans divided by the amount of its deposits at any given time. It shows the share of bank lending funded by deposits.


Norwegian covered bonds

Covered bonds are bonds conferring a preferential claim over a cover pool consisting of public sector loans and loans secured on dwellings or other real property. Only mortgage companies with special authorisation may issue covered bonds in Norway, and these bonds have been issued since June 2007.

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 agreement" was aimed at reducing 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.



Published tables