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54296
Minor decline in fixed interest share
statistikk
2011-02-23T10:00:00.000Z
Banking and financial markets
en
orbofur, Loans with fixed interest rates from banks and other financial corporations, lending, fixed-rate loan, fixed-rate periodFinancial institutions and other financial corporations, Banking and financial markets
false

Loans with fixed interest rates from banks and other financial corporations, Q4 2010

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Minor decline in fixed interest share

The share of fixed interest rate loans to Norwegian employees from financial corporations fell by 0.3 percentage points in the 4th quarter of 2010. The share fell in banks and state lending institutions and remained unchanged in mortgage companies.

Banks. Share of fixed interest rate loans to employees. Q3 2008-Q4 2010

Banks, mortgage companies and state lending institutions. Share of fixed interest rate on loans to Norwegian employees. Q1 2004-Q4 2010

The share of loans with fixed interest from financial corporations to Norwegian employees was 6.4 per cent at the end of the 4th quarter of 2010. During 2010 the share of fixed interest on loans to employees decreased by 0.9 percentage points.

The share of fixed interest loans from banks to employees decreased from 5.9 per cent at the end of the 3rd quarter to 5.7 per cent in the 4th quarter of 2010. Loans with fixed interest in the interval 1-5 years amount to about 2/3 of the fixed-rate loans.

The share of loans with fixed interest from mortgage companies to Norwegian employees was stable at 5.0 per cent at the end of both the 3rd and 4th quarters.

Declining share of fixed interest loans in state lending institutions

From the 3rd quarter to the 4th quarter of 2010 the share of fixed interest loans to employees fell from 20.6 to 19.4 per cent in state lending institutions. This share is considerably lower than 5-6 years ago.

The high share of fixed interest loans in state lending institutions compared to other financial institutions may be caused by differences in the supply of loan products. Banks and mortgage companies also offer credit lines and short-term repayment loans without a fixation option of the interest rate.

Fixed interest loans to employees from banks, mortgage companies and state lending institutions by fixed interest period. Share of total loans. Q2 2004-Q4 2010 (Corrected 24 February 2011)
Quarter Banks Mortgage companies State lending institutions Mean
Less than
1 year 		1 to 5 years More than
5 years 		Total1 Less than
1 year 		1 to 5
years 		More than
5 years 		Total1 Less than
1 year 		1 to 5
years 		More than
5 years 		Total1 Less than
1 year 		1 to 5
years 		More than
5 years 		Total1
2004                                
Q2 1.43 8.82 0.58 10.8 4.04 19.49 1.17 24.7 4.14 35.14 0.00 39.3 1.85 12.41 0.52 14.8
Q3 1.28 8.05 0.50 9.8 3.77 18.76 1.05 23.6 5.57 34.71 0.00 40.3 1.87 11.59 0.46 13.9
Q4 1.46 7.40 0.47 9.3 5.69 12.46 3.59 21.7 4.51 32.84 0.00 37.3 1.95 10.54 0.52 13.0
                                 
2005                                
Q1 1.95 7.05 0.55 9.5 6.84 12.09 3.65 22.6 10.80 24.17 0.00 35.0 3.13 9.19 0.58 12.9
Q2 2.78 5.68 0.50 9.0 4.11 10.54 4.45 19.1 11.80 22.98 0.00 34.8 3.82 7.75 0.58 12.1
Q3 3.27 4.62 0.51 8.4 3.20 6.87 3.35 13.4 11.38 21.06 0.00 32.4 4.13 6.45 0.55 11.1
Q4 2.98 4.23 0.60 7.8 7.91 9.06 2.28 19.2 10.56 21.31 0.00 31.9 3.85 6.08 0.57 10.5
                                 
2006                                
Q1 2.30 4.02 0.53 6.9 7.85 8.19 1.95 18.0 10.16 18.40 0.00 28.6 3.22 5.60 0.50 9.3
Q2 1.56 3.75 0.55 5.9 3.56 8.26 1.96 13.8 3.55 18.14 0.00 21.7 1.80 5.27 0.52 7.6
Q3 1.30 3.49 0.55 5.3 1.69 4.34 1.14 7.2 3.06 17.52 0.00 20.6 1.49 4.88 0.51 6.9
Q4 1.39 2.97 0.65 5.0 1.33 4.56 1.25 7.1 2.50 16.34 0.00 18.8 1.49 4.29 0.60 6.4
                                 
2007                                
Q1 1.43 2.93 0.74 5.1 0.74 2.63 0.92 4.3 1.39 21.98 0.00 23.4 1.40 4.61 0.68 6.7
Q2 1.40 2.68 0.77 4.8 1.13 2.00 0.91 4.0 1.47 21.75 0.00 23.2 1.39 4.28 0.71 6.4
Q3 1.44 2.53 0.73 4.7 1.18 1.60 0.88 3.7 2.76 19.87 0.00 22.6 1.54 3.92 0.68 6.1
Q4 1.33 2.64 0.72 4.7 0.82 1.08 0.59 2.5 6.96 14.70 0.00 21.7 1.75 3.50 0.65 5.9
                                 
2008                                
Q1 1.10 2.61 0.71 4.4 0.62 0.83 0.46 1.9 7.07 14.01 0.01 21.1 1.54 3.38 0.63 5.5
Q2 0.93 2.71 0.71 4.4 0.32 0.80 0.33 1.5 7.89 12.94 0.04 20.9 1.41 3.30 0.61 5.3
Q3 0.79 2.88 0.73 4.4 0.22 0.78 0.32 1.3 6.47 13.47 0.08 20.0 1.15 3.37 0.61 5.1
Q4 0.94 2.69 0.60 4.2 0.40 1.35 0.57 2.3 3.61 13.01 0.10 16.7 1.05 3.24 0.56 4.8
                                 
2009                                
Q1 1.24 4.38 0.72 6.3 0.34 3.16 0.69 4.2 3.27 13.41 0.10 16.8 1.20 4.82 0.66 6.7
Q2 1.36 4.57 0.70 6.6 0.31 3.40 0.77 4.5 3.21 17.02 0.16 20.4 1.23 5.24 0.68 7.1
Q3 1.34 4.79 0.72 6.8 0.29 3.56 0.72 4.6 2.32 19.68 0.19 22.2 1.11 5.58 0.68 7.4
Q4 1.27 4.76 0.72 6.8 0.26 3.64 0.73 4.6 2.89 19.39 0.21 22.5 1.09 5.55 0.69 7.3
                                 
2010                                
Q1 1.69 4.38 0.67 6.7 0.23 4.06 0.73 5.0 2.08 18.72 0.22 21.0 1.19 5.37 0.66 7.2
Q2 1.42 4.13 0.64 6.2 0.25 3.96 0.74 4.9 2.29 16.41 0.22 18.9 1.04 4.99 0.64 6.7
Q3 1.31 3.95 0.67 5.9 0.26 3.99 0.76 5.0 2.09 18.23 0.29 20.6 0.97 5.02 0.68 6.7
Q4 1.26 3.75 0.70 5.7 0.34 3.86 0.79 5.0 3.84 15.21 0.30 19.4 1.09 4.64 0.71 6.4
1Total figures were corrected at 24 February 2011.

Fixed interest loans in Norway

Fixed interest rate loans give predictability for interest costs, and can be regarded as an insurance against increasing interest rates. There are several possible causes for the traditionally low share of loans with fixed interest in Norway. It may be that borrowers consider fixed interest more of a speculation than insurance. Another explanation for the low share of fixed interest may be that the Central bank’s projections for the key policy interest rate are clearly communicated.