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So far, DNB has refused to continue with the full interest rate cut by Norges Bank to its loan clients in March, explaining whether the interest rate cut had no impact on the money market. .
Now, the Nibor money market rate has dropped sharply, giving DNB a better interest margin. However, the main bank has not lowered its interest rates.
Now, figures from the Renteradar.no comparison service also show that almost none of the DNB clients with the lowest interest rates received the full interest rate cut of 0.85 percentage points in March.
Of the Renteradars of more than 700 users who are DNB clients, only three out of ten received the total interest rate reduction.
– We do not recognize these figures, says DNB chief Kjerstin Braathen, who presented DNB results for the first quarter on Thursday. There, it became clear that the bank had a total of NOK 5.8 billion in losses in the first quarter.
Only one in ten has the complete cut
Rentetradar.no is a comparison service that allows its more than 12,000 users to compare their own interest rates with those of others.
Nibor
- Money Market Interest Rates Nibor is critical to the interest rates banks offer to their mortgage customers.
- The level of floating interest rates is determined by the Nibor short-term interest rate, which in turn is closely tied to Norges Bank’s key policy rate.
- Nibor is calculated as an average of what the largest banks require in interest rates on unsecured loans to other banks.
The service uses BankID on the mobile to retrieve verified information about the interest rate of their loans, which means that they have a unique view of the interest rates that banks really offer their clients.
Their figures show that of the more than 700 DNB clients who have logged into Renteradar.no in the past few weeks, only 27 percent have received the total interest rate cut of 0.85 percentage points.
One weakness with Renteradar’s numbers is that they are based on just 700 customers. Also, it is natural to assume that DNB clients using the comparison service have better interest rates than normal.
Because of this, it is natural to assume that more than one in three DNB clients has received the full interest rate reduction in full.
“Individual differences”
The figures show that, first and foremost, it was the clients with the highest interest rate who received the full cut in the interest rate. Of those who had an interest rate of 2.95 percent or less before the interest rate cut, less than eight percent received the full reduction in the interest rate.
Earlier this spring, Braathen told DN that his clients with the lowest interest rate couldn’t wait to receive the full interest rate cut.
– Most of our clients have received interest rate reductions, but here are individual differences, as happened when interest rates increased. We have individual prices, he emphasizes.
Now, the Nibor money market rate has dropped sharply, giving DNB a better interest margin. The level of Nibor is decisive for the mortgage rates that banks can offer their clients,
(Photo: Gunnar Blöndal)
It does not reduce interest rates.
When DN asked Braathen earlier this spring why DNB did not pass its entire 1.25 percentage point interest rate cut to its clients, she explained that it was because the interest rate cut had not had a total impact on the money market.
This was the explanation for most of the other banks as well.
Since Easter, the Nibor money market rate has fallen sharply, and the total decline since January is around 1.25 percentage points.
– What do you think about this?
– We cannot comment on future prices, says Braathen.
The level of Nibor is decisive for the mortgage rates that banks can offer their clients, since the cost of borrowing money from banks is closely related to this interest rate.
Nibor keeps falling
Nibor is calculated as an average of what the largest banks require in the interest rates on unsecured loans to other banks, and is generally closely related to Norges Bank’s key policy rate.
Kjerstin Braathen
(Photo: Per Thrana)
This spring, Nibor took a long time to drop due to higher premiums due to low liquidity in the market. On Thursday, Nibor falls more and has never been lower than now.
Lars Mouland, a senior analyst at Nordea Markets, said Wednesday that Nibor could fall further.
“It may drop to 0.30 percent,” said Mouland.
On Thursday, Landkreditt Bank also cut its best mortgage rate for the third time this spring, but the cut was only 0.06 percentage points. (Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We want you to share our cases using a link, which links directly to our pages. Copying or any other use of all or part of the content may only be made with written permission or as permitted by law. For more terms see here.
