Let’s not call it theft as banks drool, hauling in Nibor rate winnings with both fists
When the money market rate, Nibor, increased last year, it instantly became an argument for raising mortgage rates.
Now that Nibor has fallen three times as low, the mortgage rates haven’t been adjusted down.
The Norwegian Interbank Rate Offered (Nibor) has fallen 30 points since the New Year, according to Finansavisen newspaper. Thus, it has become much less expensive for banks to borrow money that they can lend on.
Yet, it’s not immediately apparent that they intend to cut the mortgage rate for their customers.
‘The banks themselves will pocket the winnings in the case of Nibor,’ said analyst Thomas Svendsen of Nordea Markets.
Last year, Nordea Bank Norge was first of several major banks to increase its mortgage rate. Then it was stated that Nibor had increased by 10 points.
That development was thus eliminated, and more than that, without borrowing rates being adjusted accordingly.
Nibor is calculated on an ongoing basis as an average of what six major Norwegian banks require in interest rates on unsecured lending to other banks.
© NTB Scanpix / Norway Today
