09/03/2021 | Press release | Distributed by Public on 09/03/2021 04:15
The Government has assigned responsibility to Norges Bank for setting the countercyclical capital buffer rate for banks. Norges Bank shall also regularly advise the Ministry of Finance on the systemic risk buffer for banks.
Under the Central Bank Act, Norges Bank is an executive and advisory financial stability authority. Since the annual Financial Stability Report was first published in 1996, Norges Bank has advised on measures to safeguard financial stability, including advice on banks' capital requirements.
Since 2013, Norges Bank has advised the Ministry of Finance on the countercyclical capital buffer rate, which increases banks' resilience to increased credit losses in times of crisis. The Government has today decided to delegate the decision-making authority for the countercyclical capital buffer to Norges Bank.
The systemic risk buffer requirement for banks was introduced in 2013 and was raised in December 2020. The level of the buffer shall be assessed at least every other year. Norges Bank regularly assesses systemic risk as part of its work to promote financial stability. The Government has decided that Norges Bank shall advise the Ministry of Finance on the level of the systemic risk buffer at least every other year.
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