Half of Norwegian households are financially insecure, according to a SIFO report. Falling real wages, increased rents and increased prices for food, electricity and fuel all contribute to the fact that many are now struggling with unpaid bills and growing debt collection claims, and to the fact that food queues are record long. On top of Norges Bank’s many and frequent increases in the key interest rate in the last two years, Norwegian banks have also used the situation to arrange a home-alone interest party, at the expense of regular borrowers and small savers. In the last two years, the banks have on average increased their lending rates by about one percentage point more than their deposit rates, and this aggressive interest rate setting has meant that the banks’ interest margins in the first half of this year were the highest ever measured since statistics began in 2010, according to Statistics Norway . Figures from Statistics Norway show that the banks’ profits increased sharply in 2022, and in the first half of 2023 they were over 30 per cent higher than in the first half of last year. This means that Norwegian households must in practice tighten much more than Norges Bank’s interest rate policy aims at. The banks thus contribute to intensifying the financial challenges that many people are now experiencing. In such a situation, I believe that we as politicians cannot sit and watch Norwegian banks extract crisis profits at a time when the shock interest rates have already taken people’s security away. Many around the thousands of homes probably sat down to Tuesday’s Debatten broadcast about the banks’ interest rate party with the hope that proposals for concrete solutions to the problem would be presented. Many were probably disappointed. DNB must show more social responsibility On the Debate in news, DnB’s communications director had the opportunity to try to justify the bank’s behavior towards Norwegian bank customers, without taking part in the further debate. When the state owns 34 per cent of the shares in DNB, we believe it is unreasonable and incomprehensible that they are allowed to lead the interest rate squeeze for Norwegian households without being countered by the country’s authorities. Although DNB CEO Kjerstin Braathen shadowed the pitch during broadcast earlier this week, the state should make it clear to her through its ownership dialogue with DNB that the state expects the bank’s management to take greater social responsibility and offer its customers better interest rates than today. Many politicians speak warmly of the need for “increased competition”. And yes, there is little doubt that the Norwegian banking industry largely operates as a price cartel. But it is not enough to blame the fact that customers do not switch banks often enough, measures are needed from the authorities which actually force restrictions on the banks’ interest margins and unreasonably large profits. This can be done, among other things, by regulating the banks’ ability to increase lending rates more or faster than deposit rates in the wake of interest rate increases from Norges Bank. The Consumer Council has calculated that Norwegian bank customers alone in the period following Norges Bank’s interest rate increase in June this year have lost over NOK 700 million because the banks have delayed raising deposit rates. Rødt also believes that a solution could be for the public sector itself to enter the mortgage market more strongly in order to reduce the profits of the private banks. We need a real public alternative for ordinary Norwegian bank customers, with interest rates that are not intended to finance large bonuses to Kjerstin Braathen and the rest of the bank managers or dividends to the owners. This can either be done through a strong rebuilding of Husbanken’s role or through the creation of a completely new bank. Demand that the banks finance price crisis measures Recently, a number of European countries have either introduced, or are in the process of introducing, extraordinary taxation of the banks’ interest margins and profits. Such an additional tax could provide billions of dollars to the state treasury, which could be used for price crisis measures that provide relief for all Norwegian families who are struggling. Rødt has therefore submitted a proposal to the Storting for such a tax. This will not only contribute to income for the community, but will also contribute to the banks having less to gain from continuing with their unfair interest rate setting. This will therefore also benefit Norwegian bank customers. Fortunately, we politicians are not powerless in the face of banks that take advantage of the situation and increase their profits. There is much we can do, and it is high time for a rescue package for Norwegian bank customers.
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A rescue package for bank customers – Statement
