Bank deposit rates lag behind loan hikes, sparking political outrage
Norwegian banks have raised lending rates while increasing deposit rates only modestly, prompting Red Party leader Marie Sneve Martinussen to condemn the practice as systemic greed.
Following the recent policy-rate increase by Norway's central bank, commercial banks promptly raised mortgage rates but made only limited changes to the interest paid on deposits. DinSide's analysis showed that a single digital bank aligned its savings-rate hike with the loan-rate increase, while other banks offered smaller adjustments. Red Party leader Marie Sneve Martinussen denounced the gap as "systemic greed" and urged the government to intervene to safeguard everyday consumers.
Forbrukerrådet highlighted that banks' profit margins have grown while deposit-rate growth remains subdued, suggesting a misalignment of customer interests. Several banks defended their pricing decisions, citing differing cost structures and competitive pressures. The debate underscores growing scrutiny of banking practices amid rising living costs.
Why it matters
Consumers may see higher loan costs without comparable gains on savings, affecting household budgets.
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