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66102
Increased share of fixed interest rate loans
statistikk
2012-02-22T10:00:00.000Z
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 2011

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Increased share of fixed interest rate loans

The share of fixed interest rate loans to Norwegian employees from financial corporations increased by 2.4 percentage points to 8.6 per cent at the end of the 4th quarter of 2011. The share is at its highest level since the 1st quarter of 2006.

The share of loans with fixed interest from banks to Norwegian employees increased from 5.7 per cent at the end of the 3rd quarter of 2011 to 7.3 per cent at the end of the 4th quarter the same year. This is the highest share since 2005. The share of fixed interest rate loans from mortgage companies to Norwegian employees increased from 4.4 to 6.0 per cent during the 4th quarter.

The share of loans with a remaining interest rate fixation of 1-5 years increased the most in banks and mortgage companies. From the 3rd quarter to the 4th quarter of 2011 this share increased from 2.8 to 4.3 per cent in banks, and from 2.4 to 3.7 per cent in mortgage companies.

Banks, mortgage companies and state lending institutions. Share of fixed interest rate loans to Norwegian employees. Q1 2006-Q4 2011

Increased share of fixed interest loans in state lending institutions

The share of fixed interest rate loans from state lending institutions to employees increased from 20 per cent at the end of the 3rd quarter 2011 to 33 per cent at the end of the 4th quarter. Hence, this share was at its highest level since the 2nd quarter of 2005. The share of loans with a remaining interest rate fixation of 1-5 years increased the most, both for banks and mortgage companies. This share increased from 12.4 per cent at the end of the 3rd quarter to 22.7 per cent at the end of the 4th quarter. The share of loans with a remaining interest rate fixation of over 5 years increased to 3.5 per cent at the end of the 4th quarter.

Low levels on fixed interest rates in several financial corporations may have increased the demand for loans with fixed interest rate.

Fixed interest loans to Norwegian employees from banks, mortgage companies and state lending institutions, by fixed interest period. Share of total loans. Q1 2006-Q4 2011
Quarter Banks Mortgage companies State lending institutions Total
Less than
1 year 		1 to 5 years More than
5 years 		Total Less than
1 year 		1 to 5 years More than
5 years 		Total Less than
1 year 		1 to 5 years More than
5 years 		Total Less than
1 year 		1 to 5 years More than
5 years 		Total
  Per cent
2006                                
31 March 2.3 4.0 0.5     6.9 7.8 8.2 2.0     18.0 10.2 18.4 0.0     28.6 3.2 5.6 0.5 9.3
30 June 1.6 3.7 0.6 5.9 3.6 8.3 2.0 13.8 3.6 18.1 0.0 21.7 1.8 5.3 0.5 7.6
30 September 1.3 3.5 0.5 5.3 1.7 4.3 1.1 7.2 3.1 17.5 0.0 20.6 1.5 4.9 0.5 6.9
31 December 1.4 3.0 0.6 5.0 1.3 4.6 1.2 7.1 2.5 16.3 0.0 18.8 1.5 4.3 0.6 6.4
2007                                
31 March 1.4 2.9 0.7 5.1 0.7 2.6 0.9 4.3 1.4 22.0 0.0 23.4 1.4 4.6 0.7 6.7
30 June 1.4 2.7 0.8 4.8 1.1 2.0 0.9 4.0 1.5 21.7 0.0 23.2 1.4 4.3 0.7 6.4
30 September 1.4 2.5 0.7 4.7 1.2 1.6 0.9 3.7 2.8 19.9 0.0 22.6 1.5 3.9 0.7 6.1
31 December 1.3 2.6 0.7 4.7 0.8 1.1 0.6 2.5 7.0 14.7 0.0 21.7 1.7 3.5 0.7 5.9
2008                                
31 March 1.1 2.6 0.7 4.4 0.6 0.8 0.5 1.9 7.1 14.0 0.0 21.1 1.5 3.4 0.6 5.5
30 June 0.9 2.7 0.7 4.4 0.3 0.8 0.3 1.5 7.9 12.9 0.0 20.9 1.4 3.3 0.6 5.3
30 September 0.8 2.9 0.7 4.4 0.2 0.8 0.3 1.3 6.5 13.5 0.1 20.0 1.1 3.4 0.6 5.1
31 December 0.9 2.7 0.6 4.2 0.4 1.4 0.6 2.3 3.6 13.0 0.1 16.7 1.0 3.2 0.6 4.8
2009                                
31 March 1.2 4.4 0.7 6.3 0.3 3.2 0.7 4.2 3.3 13.4 0.1 16.8 1.2 4.8 0.7 6.6
30 June 1.4 4.6 0.7 6.6 0.3 3.4 0.8 4.5 3.2 17.0 0.2 20.4 1.2 5.2 0.7 7.1
30 September 1.3 4.8 0.7 6.8 0.3 3.6 0.7 4.6 2.3 19.7 0.2 22.2 1.1 5.6 0.7 7.4
31 December 1.3 4.8 0.7 6.8 0.3 3.6 0.7 4.6 2.9 19.4 0.2 22.5 1.1 5.6 0.7 7.3
2010                                
31 March 1.7 4.4 0.7 6.7 0.2 4.1 0.7 5.0 2.1 18.7 0.2 21.0 1.2 5.4 0.7 7.2
30 June 1.4 4.1 0.6 6.2 0.3 4.0 0.7 4.9 2.3 16.4 0.2 18.9 1.0 5.0 0.6 6.7
30 September 1.3 4.0 0.7 5.9 0.3 4.0 0.8 5.0 2.1 18.2 0.3 20.6 1.0 5.0 0.7 6.7
31 December 1.3 3.8 0.7 5.7 0.3 3.9 0.8 5.0 3.8 15.2 0.3 19.4 1.1 4.6 0.7 6.4
2011                                
31 March 2.1 2.9 0.7 5.7 1.2 2.7 0.8 4.7 5.9 13.0 0.3 19.3 2.0 3.5 0.7 6.3
30 June 2.1 2.7 0.7 5.5 1.2 2.5 0.7 4.4 7.2 11.0 0.3 18.5 2.1 3.2 0.7 6.0
30 September 2.1 2.8 0.8 5.7 1.3 2.4 0.8 4.4 7.3 12.4 0.3 20.0 2.1 3.3 0.7 6.2
31 December 1.9 4.3 1.2 7.3 1.1 3.7 1.2 6.0 6.8 22.7 3.5 33.0 1.9 5.4 1.3 8.6

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 reasons 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.