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54280
Lower interest rates on loans to companies
statistikk
2011-02-23T10:00:00.000Z
Banking and financial markets
en
orbofrent, Interest rates in banks and other financial enterprises, interest rates, interest on loans, deposit rates, interest margins, banks, mortgage companies, state lending institutions, life insurance companies, Norwegian Public Service Pension FundFinancial institutions and other financial corporations, Banking and financial markets
false

Interest rates in banks and other financial enterprises, Q4 2010

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Lower interest rates on loans to companies

In the fourth quarter of 2010 the interest rate on loans fell contrary to an increase in the previous four quarters. The interest rates on loans to non-financial enterprises fell, but were stable on loans to households. The banks’ deposit rate continued rising while the interest margin fell.

Banks’ interest rate margin, interest margin on loans and deposits. Q4 2009-Q4 2010

Banks. Interest rates on total loans, deposits and interest rate margin. Q4 2009-Q4 2010

The average interest rate on loans from banks fell by 0.05 percentage points to 4.61 per cent, while the interest rate on deposits increased by 0.02 to 2.22 per cent in the fourth quarter of 2010. Hence the interest margin fell by 0.07 percentage points to 2.39 per cent after an increase in the three previous quarters. Most banks had a decline in the interest rates on loans and an increase in the deposit rates.

The interest rate on loans from mortgage companies fell by 0.05 percentage points, while there was an increase in the interest rates on loans from state lending institutions (exclusive loans with zero interest rates in the Norwegian State Educational Loan Fund) and life insurance companies by 0.2 and 0.04 percentage points respectively.

Lower loans and deposits margins

At the end of the fourth quarter of 2010, the money market rate NIBOR (3 months effective) was 2.66 per cent, the same as at the end of the third quarter. There have been no changes in Norges Bank’s key policy rate in the last three quarters, but the average NIBOR was 0.11 percentage points lower in the fourth quarter than in the previous quarter. The interest margin on loans and deposits fell by 0.05 and 0.02 percentage points.

Interest rates on loans from financial corporations. Sector. Q4 2009-Q4 2010

The interest rate on “total loans from financial corporations” (banks, mortgage companies, life insurance companies and state lending institutions) fell by 0.04 percentage points in the fourth quarter of 2010. The interest rate on loans to households was stable at 4.11 per cent, while the interest rate on loans to non-financial private and public enterprises and local government fell by 0.10, 0.02 and 0.04 percentage points respectively. The interest rate on deposits from households, non-financial public enterprises and local government increased by 0.04, 0.05 and 0.04 percentage points respectively, while the interest rate on deposits from non-financial enterprises fell by 0.02 percentage points.

Interest rate in financial corporations 4th quarter 20101
 
  31.12.2010 30.09.2010 30.06.2010 31.03.2010 31.12.2009 Changes in interest rates Share of loans. Per cent
  Last quarter Last year 31.12.2010 30.09.2010
 
1. Total loans from banks 4.61 4.66 4.56 4.42 4.28 -0.05 0.33 58.3 59.4
2. Total bank deposits 2.22 2.20 2.11 1.99 1.86 0.02 0.36    
3. Banks' interest rate margin (1-2) 2.39 2.46 2.45 2.43 2.42 -0.07 -0.03    
                   
4. Lending rate, mortgage companies 3.55 3.60 3.49 3.36 3.19 -0.05 0.36 32.8 31.5
5. Lending rate, life insurance companies 3.95 3.91 3.79 3.83 3.73 0.04 0.22 1.3 1.4
6a. Lending rate, state lending institutions 3.03 2.79 2.76 2.72 2.70 0.24 0.33 7.6 7.6
6b. Lending rate, state lending institutions excluding loans with zero interest rates in the Norwegian State Educational Loan Fund 3.48 3.28 3.21 3.16 3.08 0.20 0.40 6.6 6.5
Total loans from financial corporations2 4.13 4.17 4.07 3.95 3.85 -0.04 0.28  100.0  100.0
Local government 3.17 3.21 3.06 2.89 2.76 0.41 2.80 7.3 6.9
Non-financial public enterprises 3.18 3.20 3.06 2.87 2.63 0.55 2.65 1.9 1.8
Non-financial private enterprises 4.55 4.65 4.54 4.36 4.28 0.27 4.38 24.9 25.4
Households 4.11 4.11 4.03 3.94 3.83 0.28 3.83 65.9 66.0
Wage-earners 4.10 4.09 4.01 3.93 3.82 0.28 3.81 57.6 57.6
                   
7.The Norwegian Public Service Pension Fund 2.74 2.75 2.49 2.25 2.02 -0.01 0.72    
                   
8. Nibor (3-mnth. effective) 2.66 2.66 2.86 2.39 2.24 0.00 0.42    
Deposits margin (8 - 2) 0.44 0.46 0.75 0.40 0.38 -0.02 0.06    
Loans margin (1 - 8) 1.95 2.00 1.70 2.03 2.04 -0.05 -0.09    
                   
Banks. Repayment loans with home mortgages 4.17 4.21 4.15 4.04 3.91 -0.04 0.26 23.9 24.7
Banks. Credit loans with home mortgages 3.59 3.62 3.55 3.43 3.32 -0.03 0.27 6.2 6.1
Banks. Loans margin repayment loans with home mortgages (9 - 8) 1.51 1.55 1.29 1.65 1.67 -0.04 -0.16    
Banks. Loans margin on credit loans with home mortgages 0.93 0.96 0.69 1.04 1.08 -0.03 -0.15    
                   
Mortgage companies. Repayment loans with home mortgages 3.73 3.76 3.65 3.56 3.39 -0.03 0.34 16.5 16.0
Mortgage companies Credit loans with home mortgages 3.49 3.48 3.44 3.30 3.11 0.01 0.38 7.3 7.1
Mortgage companies. Loans margin repayment loans with home mortgages (9 - 8) 1.07 1.10 0.79 1.17 1.15 -0.03 -0.08    
Mortgage companies. Loans margin on credit loans with home mortgages 0.83 0.82 0.58 0.91 0.87 0.01 -0.04    
Life insurance companies. Repayment loans with home mortgages 3.76 3.77 3.62 3.64 3.50 -0.01 0.26 0.4 0.4
State lending institutions. Repayment loans with home mortgages 3.53 3.55 3.46 3.39 3.36 -0.02 0.17 43.3 43.6
                   
Home mortgages from financial corporations 3.96 4.00 3.92 3.84 3.72 -0.04 0.24 57.0 57.5
Credit lines from financial corporations 3.54 3.55 3.49 3.36 3.23 -0.01 0.31 12.8 12.6
Loans secured on dwellings from financial corporations 3.86 3.90 3.82 3.73 3.61 -0.03 0.25 69.8 70.2
                   
Total loans from banks and mortgage companies 4.23 4.29 4.19 4.06 3.95 -0.06 0.28 91.1 91.0
                   
Key policy rate3 2.00 2.00 2.00 1.75 1.75 0.00 0.25    
Overnight lending rate3 3.00 3.00 3.00 2.75 2.75 0.00 0.25    
 
1  Weighted average interest rates incl. commissions on NOK loans from banks and other financial corporations. Weighted average interest rates on deposits in banks from non-financial enterprises, households and local government.
2  Includes banks, mortgage companies, life insurance companies and state lending institutions. The Norwegian Public Service Pension Fund is not included.
3  Source: Central bank of Norway.

Definitions and other important information:

The interest margin: the difference between banks’ average lending and deposit rates

The lending margin: the difference between banks’ interest rates on loans and the NIBOR.

The interest margin on deposits: The difference between the NIBOR and banks’ interest rates on deposits.

About the statistics

At the end of the 4th quarter of 2010, the interest rate statistics include data from 143 banks, 29 mortgage companies, 6 life insurance companies, 3 state lending institutions and The Norwegian Public Service Pension Fund.

 

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