Macroeconomics
Banks also alerts you that lending rates will increase going forward, according to the survey, which the central Bank has done.
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Norwegian banks alerts tighter credit standards for households going forward, shows Norges Bank’s lending survey for the fourth quarter that was laid out on Thursday.
Almost all the banks have justified innstramningen with the changes in the boliglånsforskriften that apply from the first quarter of this year.
Banks will tighten in on the financial covenants related to maximum debt to income (LTI), the maximum debt to boligverdi (LTV) and the use of the interest-only period.
Banks report that they have not changed credit standards for households in the fourth quarter.
Norges Bank’s lending survey is conducted every quarter and will capture the banks ‘ assessment of demand for credit and credit standards.
The nine largest banks in the Norwegian loan market participate in the survey: DNB, Nordea, Danske Bank, Handelsbanken, Sparebank 1 SR-Bank, Sparebanken Vest, Sparebank 1 SMN, Sparebank 1 Nord-Norge and Sparebanken Sør.
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Alerts higher interest rates
Banks says that utlånsmarginen on loans to households fell slightly in the fourth quarter. In the first quarter of waiting, the banks are higher lending margins and lending rates.
“Funding, competition and regulatory changes were drawn up as forklaringsfaktorer”, writes the central Bank.
Household demand for mortgages continued to increase in the fourth quarter, reporting banks.
“the Demand for førstehjemslån increased slightly and demand for fixed-rate loans were about unchanged,” writes the central Bank.
the Increase in demand was stronger than banks as in the third quarter.
more Expensive bedriftslån
the Banks also alerts you that they will increase utlånsmarginen on bedriftslån further, after the margin increased in the fourth quarter.
The non-financial corporations ‘ demand for loans was unchanged in the fourth quarter, after a decline the previous quarters. The demand for fixed-rate loans increased slightly during the quarter.
Banks tells us that credit standards were unchanged across enterprises in the first quarter. They expect that the practice also will be unchanged in the first quarter, but some banks point out that the weak trend in oil-related industries pull in the direction of tighter credit standards.
Can dampen the housing market
senior economist Marius Gonsholt Hov, Handelsbanken believes that it is difficult to estimate the overall effects of the banks ‘ innstramning in credit standards for households, but believes it still points in the direction of the housing and the kredittbevegelsene we saw through 2016 will be muted.
– It remains to see what are the actual effects, type Hov in an update Thursday.
He points out that Norges Bank now in any case have received signals that the regulations will have an effect.
Our hovedscenario is still that Norges Bank is determined to lean against the wind, that is to say that it keeps the interest rate higher than the one indicated by the prospects in the medium term for growth and inflation.
Norges Bank expects boligprisveksten will gradually weaken through the year to a growth on an annual basis at 4.7 per cent towards the end of the year.
If the housing market cools faster down, can the central bank be forced to reconsider rentestrategien, believe Hov.
But the most likely scenario is in our view that Norges Bank will continue to keep the key rate unchanged at 0.50 per cent in the foreseeable future, writes Handelsbanken-economist.
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