Decreased growth in domestic loan debt

Published:

The twelve-month growth in the credit indicator C2 was 5.7 per cent to the end of July 2018, down from 5.9 per cent the previous month.

Written by: Anne Karin Linderud Haugen

The general public’s domestic loan debt amounted to NOK 5 637 billion at end-July, according to new figures from the Credit indicator statistics.

Figure 1. Credit indicator (C2)

General public Households Non-financial corporations Municipalities
July 2015 5.7 6.5 3.4 8.7
Aug. 5.8 6.4 4.1 7.9
Sep. 5.5 6.3 3.7 7.2
Oct. 5.6 6.4 3.7 7.6
Nov. 5.2 5.9 3.2 8.1
Dec. 5.4 6.1 3.5 7.6
Jan. 5.3 6.1 3.5 6.2
Feb. 5.2 6 3.8 5.3
Mar. 4.9 5.8 3.4 5.1
Apr. 5.1 6 3.3 5.7
May 4.8 5.9 2.6 5.7
June 5 6 3 5.4
July 2016 5 5.9 3.3 5.1
Aug. 5 6.1 3 5
Sep. 5.1 6.3 2.6 6.4
Oct. 5 6.1 2.7 5.9
Nov. 5.2 6.5 2.7 5
Dec. 4.8 6.3 1.9 5.6
Jan. 5 6.5 2.2 5.8
Feb. 5 6.6 1.8 6.4
Mar. 5.2 6.7 2.2 6.1
Apr. 5.1 6.5 2.3 5.6
May 5.4 6.7 3.1 5.2
June 5.6 6.6 4 5.3
July 2017 5.7 6.6 4.1 5.8
Aug. 5.6 6.5 3.7 6
Sep. 5.8 6.4 4.7 5.3
Okt. 5.7 6.3 4.7 5.4
Nov. 5.8 6.4 4.9 5.3
Dec. 6.4 6.4 6.7 5.3
Jan. 6.2 6.1 6.5 5.1
Feb. 6.2 6 7.3 4.3
Mar. 6.3 5.9 7.3 4.6
Apr. 6.4 5.9 7.6 4.9
May 6.1 5.8 6.7 5.8
June 5.9 5.8 6 5.4
July 2018 5.7 5.8 5.9 4.8

Unchanged debt growth in households

Households’ domestic loan debt totalled NOK 3 375 billion at end-July. The twelve-month growth was 5.8 per cent to end-July, no change from the month before.

Decreased debt growth in non-financial corporations

Non-financial corporations domestic loan debt amounted to NOK 1 766 billion at end-July. The twelve-month growth was 5.9 per cent to end-July, down from 6.0 per cent the previous month. 

Weaker growth in loans from banks and mortgage companies

Of the general public’s domestic loan debt, 80 per cent consisted of loans from banks and mortgage companies at end-July. This amounted to NOK 4 537 billion. The twelve-month growth in loans from banks and mortgage companies was 5.7 per cent, down from 5.9 per cent the previous month.

Decreased growth in debt securities

The twelve-month growth in the general public’s debt securities was 8.8 per cent to end-July, down from 8.9 per cent the previous month. 

External debt growth fell further in the 2nd quarter of 2018

The general public’s total loan debt (C3) amounted to NOK 6 900 billion at the end of the 2nd quarter of 2018. The external debt constitutes NOK 1 267 billion.

The external loan debt kept on declining to the end of the 2nd quarter. The twelve-month growth in external debt decreased from -8.8 per cent to -11.0 per cent from the end of the 1st quarter to the end of the 2nd quarter of 2018.

The external loan debt mainly relates to non-financial corporations.

 

 

Adaption to IFRS

Norwegian financial institutions reporting to ORBOF (Reporting of banks, mortgage companies, state lending institutions and finance companies’ accounts to the public authorities) has been adapted to International Accounting Standards (IFRS). The most important impact to the Credit Indicator is a change of measure from net to gross lending. Accrued interests and value changes are taken into account with the underlying financial instrument. In addition, total debt securities are corrected for lenders’ holdings of own debt securities. The calculation of transactions and growth is adjusted for these changes.

There is some uncertainty associated with the quality of data as of January 2018. The data is edited continuously and will be updated with the next release.

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