Norway keeps countercyclical capital buffer for banks unchanged

Sparebanken Sor

16/03/2017 09:02

OSLO, March 16 (Reuters) - Norway will not make additional 
changes to its countercyclical capital buffer requirement for 
banks, the finance ministry said in a statement on Thursday. 
    The decision was in line with a recommendation from the 
central bank. 
    In December, the ministry decided that banks should hold a 
countercyclical buffer of 2.0 percent by the end of 2017, an 
increase from 1.5 percent.  urn:newsml:reuters.com:*:nL5N1E96WR 
    The buffer, set by the ministry, aims to force banks to 
accumulate extra capital during boom periods on top of capital 
requirements set through other regulations. 
    The buffer can be unwound during downturns, enabling banks 
to continue lending and hence soften the impact of a recession. 
    Leading Norwegian banks include among others DNB  DNB.OL , 
SR Bank  SRBANK.OL , Sparebank 1 SMN  MING.OL , Sparebanken Vest 
 SVEG.OL  and Sparebank 1 Nord-Norge  NONG.OL . 
 
 (Reporting by Terje Solsvik, editing by Ole Petter Skonnord) 
 ((terje.solsvik@thomsonreuters.com; +47 918 666 70; Reuters 
Messaging: terje.solsvik.thomsonreuters.com@reuters.net)) 
 
Keywords: NORWAY BANKS/FINMIN