Foreign banks accounted for approximately 75% of revenues and profits in the Norwegian banking market in 2015. Ten years earlier the proportions were respectively 2 and 3 percent.
A review of some 1,300 accounting records from 2006 to 2015 shows that foreign banks are dominating the market, writes the newspaper Klassekampen.
John Idsø, Associate Professor of Economics at the University College in Western Norway, has reviewed the accounting records.
He has measured the banks’ market share by how much of their total turnover in Norwegian and foreign banks has been accounted for. In 2006, the market share was 3% for foreign banks, while in 2015 it had risen to 76%.
The accounting records also show that three quarters of profits in the banking industry goes to foreign banks. Their share of the profit has increased from 2% in 2006 to 74% in 2015. During the same period, the total profits of banks increased from NOK 13.7 billion to NOK 120 billion.
According to Idsø, so far it is the commercial banks that have been hardest hit by the competition. However, he believes that the savings banks will also be affected in the future.
Source: NTB scanpix / Norway Today