Innlån

Innlån is a term used in finance, particularly in Norwegian banking, to describe funding that a financial institution raises by borrowing from external sources rather than from customers. It covers wholesale funding such as interbank borrowings, repurchase agreements (repos), and the issuance of debt securities to investors. In balance sheets, innlån appears as a liability and is typically contrasted with innskudd, which refers to customer deposits.

Types and sources of innlån include short-term and long-term borrowings from other banks or financial institutions, funds raised in money markets, and debt instruments issued to investors. Banks may use innlån to fund lending, manage liquidity, or adjust their funding mix. The specific instruments can range from overnight or term interbank loans to notes and bonds with varying maturities and interest structures.

Role in risk and regulation: Because innlån represents wholesale funding from external markets, it can influence a bank’s liquidity and funding risk. A high reliance on innlån may increase sensitivity to market conditions and funding costs during stress periods. Regulators monitor liquidity adequacy and funding resilience, including metrics such as liquidity coverage ratio and net stable funding ratio, which reflect the stability and maturity structure of a bank’s innlån.

Innlån in practice: In Norwegian banking practice, innlån is a standard category on the liability side of the balance sheet, alongside innskudd (customer deposits). Understanding a bank’s innlån composition helps assess funding quality, cost of funds, and exposure to market fluctuations.