Norway: Financial Sector Assessment Program - Financial System Stability Assessment
IMF Staff Country Reports, September 9, 2015
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- Norway: Financial Sector Assessment Program - Financial System Stability Assessment
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Bibliographic details
- Published: September 9, 2015
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513522111.002
Summary and Key Findings
- Norway’s financial system coped well with the global financial crisis and has further increased buffers to deal with potential shocks.
- Significant financial imbalances have built up since the global financial crisis.
- Stress tests suggest that under severe macroeconomic shocks, banks and life insurers could face important but manageable capital shortfalls.
- The authorities have taken significant measures to improve the oversight framework, but further strengthening is needed.
- The regulatory and supervisory framework is generally good, but some weaknesses need to be addressed.
Stress Testing and Resilience
- Under severe macroeconomic shocks, stress tests indicate:
- Banks could face important but manageable capital shortfalls.
- Life insurers could face important but manageable capital shortfalls.
Regulatory and Supervisory Framework
- Authorities have implemented significant measures to improve oversight.
- Additional strengthening of the oversight framework is recommended to address remaining weaknesses.
- Overall characterization: regulatory and supervisory framework is generally good, with some weaknesses to be addressed.
Subject Areas and Keywords
- Subject: Banking, Commercial banks, Financial institutions, Financial sector policy and analysis, Financial stability assessment, Insurance companies, Solvency, Stress testing
- Keywords: bank, bank instrument, Commercial banks, CR, Financial stability assessment, financing, funding profile, Global, IMF staff estimate, Insurance companies, interest rate, ISCR, lending operation, Norway, parent bank, price, reporting requirements, risk-weighted capital ratios, Solvency, Stress testing, wholesale funding