Norway bank regulator proposes cap on consumer credit

Morrow Bank ASA

28/03/2017 11:35

OSLO, March 28 (Reuters) - Norway's Financial Supervisory 
Authority (FSA) proposed regulations on Tuesday to limit the 
amount of credit card debt and other high-interest loans that 
banks can grant to individuals, the regulator said in a 
statement. 
    ** These forms of consumer debt grew by 15 percent in 2016 
    ** The rules compliment recent changes in regulations 
intended to limit the rise of Norwegian mortgage debt 
    ** The FSA proposal would cap overall loans, including 
consumer loans and mortgage debt, at five times the gross annual 
income of the borrower 
    ** The guidelines will apply to Norwegian banks as well as 
to units of foreign banks operating in Norway 
    ** The proposal will now be sent for a round of 
consultations, with an April 19 deadline, the FSA added 
 
 (Reporting by Terje Solsvik, editing by Camilla Knudsen) 
 ((terje.solsvik@thomsonreuters.com; +47 918 666 70; Reuters 
Messaging: terje.solsvik.thomsonreuters.com@reuters.net)) 
 
Keywords: NORWAY BANKS/CONSUMERS