This is an archived release.
Increased interest rate on loans to corporations
In the second quarter of 2011 the interest rate on loans from financial institutions to non-financial corporations increased contrary to a minor decrease in the interest rate on loans to households. The total interest rate margin in banks remained stable in the same period.
The average interest rate on loans from banks increased by 0.06 percentage points to 4.67 per cent, while the interest rate on deposits increased by 0.07 percentage points to 2.32 per cent in the 2nd quarter of 2011. Hence, the interest margin decreased by 1 basis point to 2.35 percentage points.
The interest margin in banks to non-financial corporations decreased from 2.44 to 2.46 percentage points in the 2nd quarter of 2011. In the same period the interest margin in banks to households increased from 2.38 to 2.39 percentage points. From the 2nd quarter 2006 to the 3rd quarter 2008 the interest margin in banks to households was considerably higher than the margin to non-financial corporations. After this period (4th quarter 2008-2nd quarter 2011) the interest margin to non-financial corporations has, on average, been higher than to households.
The key policy rate was increased from 2 to 2.25 per cent in May this year. The effect of this increase on interest rates on loans from the Norwegian financial corporations is expected to be higher in the 3rd quarter 2011 than in the 2nd quarter 2011. One of the reasons is that financial corporations have to inform debtors six weeks in advance of interest rate increases on loans with floating interest rates. However, there could be some effect in the 2nd quarter since the financial corporations have the possibility to change the interest rates on new business.
The interest rate on “total loans from financial corporations” (banks, mortgage companies, life insurance companies and state lending institutions) increased by 0.04 percentage points in the 2nd quarter of 2011. The interest rate on loans to households decreased by 0.02 percentage points, while the interest rate on loans to non-financial private corporations increased by 0.16 percentage points. The interest rate on deposits from households decreased by 0.02 percentage points, while the interest rate on deposits from non-financial private corporations increased by 0.18 percentage points in the same period. The interest rate on deposits from non-financial private corporations is at its highest level since the 1st quarter of 2009.
Decreased lending margin
The 3 month effective NIBOR was 2.99 per cent at the end of the 2nd quarter of 2011.This is the highest level for NIBOR since the 1st quarter of 2009. The lending margin decreased from 1.88 to 1.68 percentage points from the 1st to the 2nd quarter 2011. The interest margin on deposits increased from 0.48 to 0.67 percentage points in the same period.
|30 June 2011||31 March 2011||31 December 2010||30 September 2010||30 June 2010||Changes in interest rates||Share of loans. Per cent|
|Last quarter||Last year||30 June 2011||31 March 2010|
|Total loans from banks||4.67||4.61||4.61||4.66||4.56||0.06||0.11||57.0||57.5|
|Total bank deposits||2.32||2.25||2.22||2.20||2.11||0.07||0.21|
|Banks' interest rate margin||2.35||2.36||2.39||2.46||2.45||-0.01||-0.10|
|Lending rate, mortage companies||3.57||3.53||3.55||3.60||3.49||0.04||0.08||34.2||33.6|
|Lending rate, life insurance companies||3.99||3.93||3.95||3.91||3.79||0.06||0.20||1.2||1.3|
|Lending rate, state lending institutions||2.92||2.95||3.03||2.79||2.76||-0.03||0.16||7.5||7.6|
|Lending rate, state lending institutions exclusive loans with zero interest rates in the Norwegian State Educational Loan Fund||3.42||3.45||3.49||3.29||3.21||-0.03||0.21|
|Total loans from financial corporations2||4.15||4.11||4.13||4.17||4.08||0.04||0.07|
|The Norwegian Public Service Pension Fund||2.74||2.74||2.74||2.75||2.49||0.00||0.25|
|Loans from financial corporations to non-financial corporations||4.76||4.60||4.55||4.65||4.54||0.16||0.22|
|Loans from financial corporations to households||4.04||4.06||4.11||4.11||4.03||-0.02||0.01|
|Loans from banks to non-financial corporations||4.83||4.67||4.62||4.70||4.59||0.16||0.24|
|Loans from banks to households||4.60||4.61||4.64||4.66||4.58||-0.01||0.02|
|8. Nibor (3mnd. effective)||2.99||2.73||2.66||2.66||2.86||0.26||0.13|
|Deposits margin (8 - 2)||0.67||0.48||0.44||0.46||0.75||0.19||-0.08|
|Loans margin (1 - 8)||1.68||1.88||1.95||2.00||1.70||-0.20||-0.02|
|Key policy rate3||2.25||2.00||2.00||2.00||2.00||0.25||0.25|
|Overnight lending rate3||3.25||3.00||3.00||3.00||3.00||0.25||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 rate.
The interest margin on deposits: The difference between the NIBOR rate and banks’ interest rates on deposits.
About the statistics
At the end of the 1st quarter of 2011, the interest rate statistics include data from 144 banks, 29 mortgage companies, 6 life insurance companies, 3 state lending institutions and the Norwegian Public Service Pension Fund.