Norway keeps countercyclical capital buffer for banks unchanged

Sparebanken Sor

20/09/2018 09:00

OSLO, Sept 20 (Reuters) - Norway will maintain its
countercyclical capital buffer requirement for banks at the
current level, the finance ministry said in a statement on
Thursday.
    The decision was in line with the recommendation from the
central bank.
    In December 2016, 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. 
    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 Oslo newsroom)
 ((terje.solsvik@thomsonreuters.com; +47 918 666 70; Reuters
Messaging: terje.solsvik.thomsonreuters.com@reuters.net))