The importance of the international money markets as a source of financing has grown over the last 10 years as growth in the banks' deposits has lagged behind growth in lending. The higher financing costs have been passed on to the banks' customers. Since last autumn, the banks have again reduced their interest rates somewhat.
The decline in deposit rates has more or less mirrored the reduction in policy rates, while lending rates for households and the corporate sector have declined a little less. The result is higher interest margins for the banks, at a time when losses are expected to increase for a period to come.