Norway: Financial System Stability Assessment-Press Release; and Statement by the Executive Director for Norway

IMF Staff Country Reports, August 12, 2020

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Canonical URL: Norway: Financial System Stability Assessment-Press Release; and Statement by the Executive Director for Norway

Much of the work of the Financial Sector Assessment Program (FSAP) was conducted prior to the COVID-19 pandemic, with the missions ending on February 13, 2020.
Given the FSAP’s focus on medium-term challenges and vulnerabilities, its findings and recommendations for strengthening policy and institutional frameworks remain pertinent.
The report was updated to reflect key developments and policy changes since the mission work was completed.
The report includes a risk analysis that quantifies the possible impact of the COVID-19 crisis on bank solvency.

Regulatory capital requirements for banks were raised.
Actions were taken to bolster the weak capital position of insurers.
Temporary borrower-based measures for residential mortgages were introduced; these measures seem to have had some moderating impact on segments of the housing market.
The resolution framework was strengthened with:
- Implementation of the Bank Recovery and Resolution Directive (BRRD).
- Designation of Finanstilsynet (FSA) as the resolution authority.

The updated report contains a risk analysis that quantifies the possible impact of the COVID-19 crisis on bank solvency.
FSAP findings and recommendations emphasize medium-term challenges and vulnerabilities relevant despite mission timing prior to the pandemic.

Executive Summary
- Executive Summary (Markdown version)
- Executive Summary (PDF)