## Norway: Financial Sector Assessment Program-Technical Note-Linkages and Interconnectedness in the Norwegian Financial System

_IMF Staff Country Reports, September 17, 2015_

## Source details

**Canonical URL:** [Norway: Financial Sector Assessment Program-Technical Note-Linkages and Interconnectedness in the Norwegian Financial System](https://www.imf.org/en/publications/cr/issues/2016/12/31/norway-financial-sector-assessment-program-technical-note-linkages-and-interconnectedness-in-43269)

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## Bibliographic details
- Published: September 17, 2015
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513571737.002

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### Summary findings
- The Technical Note reviews linkages and interconnectedness in the Norwegian financial system for Norway.
- Norway’s banks have important connections with global financial centers, and regional links are also important.
- Norwegian banks are very dependent on global financial centers as sources of funding and to hedge currency risks.
- Cross-sectoral exposures of Norway’s banks, insurance companies, and real estate companies are significant and extend beyond the Nordic region.

### Systemic linkages and channels
- Banking links to global financial centers:
  - Dependence on global financial centers for funding.
  - Use of global markets to hedge currency risks.
- Regional and cross-border connections:
  - Regional links (Nordic and beyond) are important alongside global connections.
  - Crossborder and cross-sectoral exposures extend beyond the Nordic region.
- Cross-sectoral exposures:
  - Significant exposures among banks, insurance companies, and real estate companies.

### Policy recommendations and monitoring
- Expand monitoring efforts of crossborder and cross-sectoral exposures of the Norwegian financial sector.
- Conduct regional stress tests to capture spillovers arising from regional and global linkages.
- Use market data and, if available, balance sheet data of exposures at the individual financial institution level to support monitoring and stress testing.

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_Source: https://www.imf.org/en/publications/cr/issues/2016/12/31/norway-financial-sector-assessment-program-technical-note-linkages-and-interconnectedness-in-43269_