BRUSSELS (MNI) – Banks in Norway are expected to tighten credit
standards for both households and businesses in the fourth quarter of
2011, says the Norwegian central bank’s latest survey of bank lending,
released Tuesday.
Analysing the tightening of standards for lending to businesses,
Norway’s central bank, Norges Bank, said that “banks’ funding situation,
the economic outlook and the sector-specific outlook contributed to this
tightening to some degree”. The same factors are expected to drive
tightening in the fourth quarter, said the bank.
The survey shows that credit standards for businesses already were
tightened somewhat in the third quarter of 2011, but those for
households remained unchanged.
Looking ahead, the respondents said they expect corporate credit
demand to be somewhat lower but household credit demand to remain
approximately unchanged, after having increased more than expected in
the third quarter.
Households are showing a growing preference for fixed-rate loans,
Norges Bank noted.
Corporate credit demand rose less than expected in the third
quarter, said Norges Bank.
Lending margins for households fell in the third quarter but rose
somewhat for corporate loans, the survey shows. Margins are, however,
expected to rise somewhat for both customer types in the future.
Brussels bureau: +32495228374; pkoh@marketnews.com
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