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Norway keeps countercyclical capital buffer for banks unchanged
June 22, 2017 / 8:09 AM / 6 months ago

Norway keeps countercyclical capital buffer for banks unchanged

OSLO, June 22 (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.

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, SR Bank, Sparebank 1 SMN, Sparebanken Vest and Sparebank 1 Nord-Norge. (Reporting by Terje Solsvik)

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