Norway: Financial Sector Assessment Program-Technical Note-Crisis Management, Bank Resolution, and Financial Sector Safety Nets
IMF Staff Country Reports, September 17, 2015
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Bibliographic details
- Published: September 17, 2015
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513528298.002
Summary findings
- This Technical Note reviews crisis management, bank resolution, and financial sector safety nets in Norway.
- Arrangements for crisis management, bank and group resolution, and the financial sector safety nets are "well developed and tested in Norway."
- "Roles, responsibilities, accountabilities, and information-sharing arrangements among the relevant bodies are generally well defined and functioning."
- The current legal framework "provides substantial powers and flexibility to deal with failing or failed banks but needs to be strengthened in several respects."
- "The Financial Supervisory Authority has begun to implement a recovery plan requirement for the largest banks."
- "The authorities also make good use of simulation exercises to enhance crisis preparedness."
Major themes and analysis
- Crisis management and resolution architecture
- Well-developed arrangements for crisis management, bank and group resolution, and financial sector safety nets.
- Clear roles, responsibilities, accountabilities, and information-sharing arrangements among relevant bodies.
- Legal and regulatory framework
- The legal framework grants substantial powers and flexibility to address failing or failed banks.
- The legal framework "needs to be strengthened in several respects."
- Recovery planning and supervisory action
- The Financial Supervisory Authority (FSA) has begun to implement a recovery plan requirement for the largest banks.
- Crisis preparedness and testing
- Authorities employ simulation exercises to enhance crisis preparedness.
Policy implications and recommendations (implicit in the Note)
- Strengthen legal framework in identified respects to ensure robustness of powers and tools for failing or failed banks.
- Continue implementation and supervisory enforcement of recovery plan requirements for the largest banks.
- Maintain and expand simulation exercises to further enhance crisis preparedness and coordination among authorities.
Subject tags and keywords (as presented)
- Subject: Bank resolution, Bank resolution framework, Banking, Financial crises, Financial sector policy and analysis, Financial sector stability, Financial stability assessment
- Keywords: articles of association, Bank resolution, Bank resolution framework, banking group, banks assets, concern resolution, CR, Financial sector stability, Financial stability assessment, FSA comment, FSA responsibility, Global, guarantee funds, ISCR, lead resolution authority, MREL requirement, MREL requirements, problem bank, saving bank, size bank, solvency support