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Bank Lending and Credit + Objectives

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Bank Lending and Credit + Objectives Powered By Docstoc
					Results from Norges Bank's Survey of Bank Lending. Net percentage balances
Lending to households

The banks use a scale of five alternative responses to indicate the degree of change in credit conditions. Banks that report that conditions have changed "a lot"
are assigned twice the score of those who report that conditions have changed "a little". The responses are weighted by the banks' shares of the change in
lending to households. The resulting net balances are scaled to lie between -100 % and 100 %. If all the banks in the sample report some tightening of credit
standards, the net percentage balance will be -50 %. If some of the banks have tightened their credit standards a little without the other banks changing their
credit standards, the net percentage balance will lie between 0 and -50 %. If all the banks in the sample have substantially tightened their credit standards, the
net percentage balance will be -100 %.

                    1)
1. Credit demand
                                                                                                 2007:4         2008:1         2008:2         2008:3         2008:4    2009:1   2009:2   2009:3   2009:4   2010:1   2010:2
Total                                                           Past three months                 -18.8          -41.7          -29.9          -64.6          -68.8     -40.8      0.9      6.8     11.1    -22.2     -4.9
                                                                Next three months                 -24.5          -37.6          -35.8          -54.3          -63.6      15.5     31.3      0.0      3.5     29.8     -8.5

Loans secured on dwellings                                      Past three months                   -9.0          -41.7          -26.1          -64.6         -71.8     -43.8      3.9     15.0     11.1    -22.2     -4.9
                                                                Next three months                  -24.5          -33.8          -32.0          -54.3         -63.6      15.5     31.3      0.0      3.5     32.0     -8.5

 - Repayment loans secured on dwellings                         Past three months                  -13.3          -41.7          -29.9          -64.6         -68.8     -46.7      3.9     15.0     11.1    -22.2     -4.9
                                                                Next three months                  -24.5          -33.8          -37.1          -54.3         -63.6       5.7     28.3      0.0      3.5     32.0     -8.5

     First-home loans                                           Past three months                  -20.3          -47.6          -27.7          -65.7         -73.5     -48.9      0.5      1.4      8.8    -31.3    -24.9
                                                                Next three months                  -26.5          -41.1          -43.3          -62.4         -67.1      13.8     38.4      0.0     -0.3    -15.7    -20.3

 - Home equity lines of credit                                  Past three months                   26.8            7.2          -23.8          -48.7         -78.6     -40.8    -11.8     -2.0      8.2    -26.0    -17.5
                                                                Next three months                  -14.7            3.8          -29.0          -54.3         -60.6      15.5     28.3      3.0     -0.3     18.8    -14.6

Other secured repayment loans (car loans, boat loans etc.)      Past three months                   -9.8          -41.0          -42.1          -75.6         -75.6     -43.1      6.4      5.9      3.0    -18.8    -12.9
                                                                Next three months                  -32.5          -41.8          -48.0          -61.5         -62.9       0.5     27.0      5.9     -4.2     26.0    -18.8

Unsecured repayment loans (consumer loans)                      Past three months                   -7.2          -37.1          -29.8          -35.0         -10.7     -52.8     -6.0     14.6      0.0    -23.0    -21.0
                                                                Next three months                  -14.5          -37.9          -22.0          -49.6         -19.2      -3.8      0.0     -4.2     -4.2     21.8    -18.8

Fixed-rate loans                                                Past three months                  -18.3          -22.6          -14.4           -2.9          13.5      67.0     20.0     29.5     15.0    -14.4     15.8
                                                                Next three months                    5.5           -9.8           -7.2           -0.4          12.2      33.4     11.7      3.0      0.0     17.5    -13.6

                         1)
2. Credit standards
                                                                                                 2007:4         2008:1         2008:2         2008:3         2008:4    2009:1   2009:2   2009:3   2009:4   2010:1   2010:2
Total                                                           Past three months                  -3.9           -3.9           -8.0          -43.8          -35.0       0.5      0.0      0.0      0.0    -18.8     -6.5
                                                                Next three months                  -6.9          -11.0          -13.3          -44.8           -3.9       0.0      0.0     -3.0      0.0     -3.0      0.0

Loans secured on dwellings                                      Past three months                   -3.9           -3.9           -4.3          -47.7         -35.0       0.5      0.0      3.9      0.0    -18.8     -6.5
                                                                Next three months                   -6.9           -7.2           -7.2          -44.8          -3.9       0.0      0.0     -3.0      0.0     -3.0      0.0

 - Repayment loans secured on dwellings                         Past three months                   -3.9           -3.9           -4.3          -50.0         -35.0       0.5      0.0      0.0      0.0    -18.8     -6.5
                                                                Next three months                   -6.9           -4.3           -4.3          -47.0          -1.7       0.0      0.0      0.0      0.0      0.0      0.0

     First-home loans                                           Past three months                   -4.3           -4.3           -4.6          -58.1         -44.4      -6.0    -10.6      0.0    -10.6    -20.3      1.8
                                                                Next three months                   -7.5           -7.8          -10.3          -48.9          -4.3       0.0      0.0     -7.8      0.0     -7.8      0.0

 - Home equity lines of credit                                  Past three months                   -7.7           -7.7          -12.3          -44.8         -35.0       0.5      0.0      0.0      0.0      0.0     -2.3
                                                                Next three months                   -7.7           -8.0          -11.0          -44.8          -3.9       0.0      0.0      0.0      0.0      0.0      0.0

Other secured repayment loans (car loans, boat loans etc.)      Past three months                    0.0            0.0           -3.8          -40.8         -43.0     -17.3     -3.8      0.0      0.0      0.0      0.0
                                                                Next three months                   -8.0           -3.8           -3.8          -45.1          -7.7      -3.8      0.0     -4.3      0.0      0.0      0.0

Unsecured repayment loans (consumer loans)                      Past three months                    0.0            0.0           -3.8          -46.1         -43.0     -36.1     -3.8      0.0      0.0      0.0      0.0
                                                                Next three months                   -3.8           -3.8           -6.0          -50.3          -7.7      -3.8      0.0      0.0      0.0     -3.0      0.0

3. Factors affecting credit standards1)
                                                                                                 2007:4         2008:1         2008:2         2008:3         2008:4    2009:1   2009:2   2009:3   2009:4   2010:1   2010:2
Economic outlook                                                Past three months                 -17.5          -17.5          -17.8          -79.5          -57.7      -5.6      6.5      3.9      3.0      0.0      0.0
                                                                Next three months                 -20.5          -13.5          -43.8          -83.7          -29.5       1.4      5.2      3.0      0.0      0.0      0.0

Bank's appetite for risk                                        Past three months                  -11.9           -7.7          -43.1          -51.5         -51.5      -7.5      0.0      0.0      0.0    -18.8     -4.2
                                                                Next three months                   -7.7          -20.8          -13.3          -55.8         -30.7      -3.8      3.0      0.0      0.0     -7.2      0.0

Market share objectives                                         Past three months                    0.0            0.0           -4.2          -28.4           -3.8     -7.5      4.2      4.2      3.0      4.2      2.3
                                                                Next three months                    9.8            0.0            0.0          -28.4           -3.8     -3.8      3.0      0.0      3.0      0.0      2.3

Funding                                                         Past three months                    0.0            0.0          -23.0          -44.0         -26.2       4.2      7.2      3.0      3.0      4.2      2.3
                                                                Next three months                    0.0          -23.1            0.0          -55.8          -7.2       5.2      3.0      0.0      3.0      0.0     -5.2

Capital adequacy                                                Past three months                                                                               -8.5     -3.3      4.2      0.0      3.0      4.2      0.0
                                                                Next three months                                                                               -4.2     -3.8      0.0      3.0      3.0      0.0      0.0

Default                                                         Past three months                    0.0           -3.8          -12.3          -16.0         -34.5     -10.5     -3.8      3.0      3.0      0.0      0.0
                                                                Next three months                  -13.2          -13.5          -12.3          -25.8         -30.7     -11.0     -3.0      3.0      3.0      0.0      0.0

4. Loan conditions
                                                                                                 2007:4         2008:1         2008:2         2008:3         2008:4    2009:1   2009:2   2009:3   2009:4   2010:1   2010:2
Lending margins2)                                               Past three months                  12.6            8.6          -26.0          -38.9           22.4       7.2     13.2      5.5      3.9    -12.7    -20.1
                                                                Next three months                  39.7           -9.3           10.4           24.2            3.0      -5.2     -3.6    -11.1    -11.8    -15.0     -5.0

                                        3)
Maximum loan-to-income ratio                                    Past three months                    0.0            0.0          -22.6          -32.3         -13.5       0.0      0.0      3.0      0.0      0.0     -2.3
                                                                Next three months                  -16.1          -11.0           -6.7          -28.1          -2.3       0.0      0.0      0.0      0.0    -21.8     -2.3

                                   3)
Maximum loan-to-value ratio                                     Past three months                   -8.2           -3.9           -8.0          -25.9         -12.3      -4.2     -4.2      3.0      0.0    -18.8     -2.3
                                                                Next three months                   -7.7           -8.0           -8.0          -21.6          -4.2      -3.0      0.0     -4.2      0.0    -26.0     -6.5

                              3)
Maximum loan maturity                                           Past three months                    0.0            0.0            0.0          18.8             0.0      0.0      0.0     -3.0      0.0      0.0      0.0
                                                                Next three months                    4.2            0.0            0.0          17.8             3.8     -3.0      0.0      0.0      0.0      0.0      0.0

Use of interest-only periods3)                                  Past three months                   -3.9           -8.2           -2.3          18.8             0.0     -4.2     -4.2     -4.2      0.0     -3.0      0.0
                                                                Next three months                   -4.4            0.0            0.0          17.8             3.8     -4.2     -4.2      3.0      0.0     -7.2      0.0

                    2)
Commissions/fees                                                Past three months                    0.0            9.8            2.3            3.0            0.0      0.0      0.0      0.0      0.0      4.3      3.0
                                                                Next three months                    9.8            0.0            5.2            6.7            3.8      0.0      0.0      0.0      0.0      0.0      0.0

1)
   Negative net percentage balances indicate lower demand / tighter credit standards / that the factor contributes to tighter credit standards relative to previous
quarter
2)
   Positive net percentage balances indicate tighter credit standards relative to previous quarter
3)
   Negative net percentage balances indicate tighter credit standards relative to previous quarter




D:\Docstoc\Working\pdf\5d625de1-c980-4275-836a-fa6b22de5956.xls11/15/2010
Results from Norges Bank's Survey of Bank Lending. Net percentage balances
Lending to non-financial corporations

The banks use a scale of five alternative responses to indicate the degree of change in credit conditions. Banks that report that conditions
have changed "a lot" are assigned twice the score of those who report that conditions have changed "a little". The responses are weighted
by the banks' shares of the change in lending to non-financial corporations. The resulting net balances are scaled to lie between -100 %
and 100 %. If all the banks in the sample report some tightening of credit standards, the net percentage balance will be -50 %. If some of
the banks have tightened their credit standards a little without the other banks changing their credit standards, the net percentage balance
will lie between 0 and -50 %. If all the banks in the sample have substantially tightened their credit standards, the net percentage balance
will be -100 %.

                    1)
1. Credit demand
                                                                              2007:4        2008:1         2008:2         2008:3       2008:4    2009:1   2009:2   2009:3   2009:4   2010:1   2010:2
Non-financial corporate demand for lending Past three months                    32.3         -36.2          -51.1          -55.3        -39.8     -34.9    -14.2     11.1     16.8     15.9     31.5
                                           Next three months                   -48.7         -25.5          -50.0          -77.7        -30.8     -51.5      6.7     29.2     33.8     26.2     12.9

Utilisation of credit lines                   Past three months                  16.6           5.9           29.5          29.5         26.8      23.6      8.1      0.0     -1.1      0.0      0.0
                                              Next three months                  -1.1          22.5           29.5          64.1         49.1      36.8      7.2      0.0      0.0      0.0      0.9

Fixed-rate loans                              Past three months                  22.5         -10.7            5.9           4.1         10.0      14.9      2.0      5.9      0.0      0.0      0.9
                                              Next three months                 -17.7           5.9           12.9          11.1          6.8      14.0      5.0     13.0      0.0      0.0      0.0

2. Credit standards1)
                                                                              2007:4        2008:1         2008:2         2008:3       2008:4    2009:1   2009:2   2009:3   2009:4   2010:1   2010:2
Total                                         Past three months                -17.0         -17.0          -30.4          -48.7        -62.1     -31.9    -13.3     23.6     16.6      5.9      7.9
                                              Next three months                -33.6         -22.5          -29.5          -59.1        -40.1     -30.8      0.0     16.6      0.0     12.9      0.0

Commercial real estate                        Past three months                 -17.0         -53.6          -56.4          -78.7        -80.1    -42.0    -12.9     10.7     10.7     12.9     -0.9
                                              Next three months                 -46.6         -18.9          -55.5          -79.2        -44.2    -35.4      0.0     10.7      0.0      5.9      0.0

3. Factors affecting credit standards1)
                                                                              2007:4        2008:1         2008:2         2008:3       2008:4    2009:1   2009:2   2009:3   2009:4   2010:1   2010:2
Economic outlook                              Past three months                -17.0         -46.6          -48.7          -65.7        -81.2     -50.1    -13.1      7.9     34.6      0.9      0.0
                                              Next three months                -29.5         -47.8          -43.6          -84.8        -63.7     -31.9      0.9      0.9     17.2      0.0      0.0

Sector-specific outlook                       Past three months                 -17.3         -50.4          -30.6          -59.8        -50.4    -42.2    -14.9     -1.1     -1.1     16.6      0.0
                                              Next three months                 -37.1         -44.5          -30.6          -60.0        -34.1    -22.4     -7.0     -1.1      0.0      0.0      0.0

Bank's appetite for risk                      Past three months                 -17.0         -29.5          -27.5          -54.6        -68.0    -37.8    -14.2      0.0      4.1      0.0      0.0
                                              Next three months                 -29.5         -25.9          -22.5          -55.0        -56.7    -31.9      0.0      0.0      4.1      4.1      0.0

Market share objectives                       Past three months                   0.0           0.0            0.0          -11.8        -24.8    -24.8      0.0     20.0     13.0     13.0      0.9
                                              Next three months                 -16.6           0.0            0.0          -11.8        -18.9     -5.9      0.0      0.0     17.2     13.0      0.9

Funding                                       Past three months                 -18.2         -30.4          -23.4          -74.1        -67.8    -29.8      0.0     12.4     20.7     23.6      6.8
                                              Next three months                 -29.5         -29.5           -6.8          -74.6        -34.0    -10.0      0.0     20.7     20.7      7.0     -0.9

Capital adequacy                              Past three months                                                                          -66.9    -30.3    -10.0     12.4     27.8     22.5      5.9
                                              Next three months                                                                          -52.7    -11.4      4.1     44.3     43.2      5.9      0.0

Default                                       Past three months                  -5.9           -5.9         -22.5          -28.4        -31.8    -33.1    -12.9      0.0      0.0      0.0      0.0
                                              Next three months                 -22.5           -5.9         -23.4          -33.8        -42.5    -27.2     -7.0      0.0      4.1      0.0      0.0

4. Loan conditions
                                                                              2007:4        2008:1         2008:2         2008:3       2008:4    2009:1   2009:2   2009:3   2009:4   2010:1   2010:2
Lending margins2)                             Past three months                 15.6          50.0           65.3           65.1         67.0      57.0     21.3     -2.1    -22.6    -36.8    -36.6
                                              Next three months                 48.7          50.0           48.7           51.5         63.0      37.0      6.6    -15.4    -24.4    -19.2     14.2

Collateral requirements2)                     Past three months                   7.0          12.9           14.0          53.7         37.1      49.5     12.9      4.1      0.0      0.0      0.0
                                              Next three months                  12.9          12.9           14.0          53.7         27.1      12.9      7.0      0.0      0.0      0.0      0.0

                         2)
Equity requirements                           Past three months                  17.0          46.6           31.5          54.6         55.9      49.5      5.9      0.0      0.0      0.0      0.0
                                              Next three months                  33.6          25.9           14.0          53.7          7.0       7.2      0.0      0.0      0.0      0.0      0.0

Maximum loan maturity3)                       Past three months                  -4.1           0.0          -16.6           -7.0        -14.0    -49.6     -6.8      0.0      0.0      7.0      7.0
                                              Next three months                 -16.6           0.0          -16.6          -14.0         -7.0     -6.8      0.0      0.0      7.0      7.0      0.0

Use of interest-only periods3)                Past three months                  -7.0           -7.9         -17.5            0.0         5.9      22.5     -0.9      0.0      0.0      0.0      0.0
                                              Next three months                 -29.5           -7.0         -17.5            0.0        10.0      21.6      0.0      0.0      0.0      0.0     -0.9

Commissions/fees2)                            Past three months                   4.1           4.1           30.5          34.9         61.7      47.8     14.9     -9.6      0.9      0.9      0.9
                                              Next three months                   4.1          29.6           30.5          18.3         44.2      47.5      7.0    -16.6    -16.6      0.0      0.0

1)
   Negative net percentage balances indicate lower demand / tighter credit standards / that the factor contributes to tighter credit standards
relative to previous quarter
2)
   Positive net percentage balances indicate tighter credit standards relative to previous quarter
3)
   Negative net percentage balances indicate tighter credit standards relative to previous quarter




D:\Docstoc\Working\pdf\5d625de1-c980-4275-836a-fa6b22de5956.xls11/15/2010

				
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