Report of the Law Commission on the Act relating to Norges Bank and the Monetary System

The Commission has today submitted its Report and proposal for a new central bank act to the Minister of Finance Siv Jensen (Progress Party). The Commission has further considered the organisation of Norges Bank and the Government Pension Fund Global.

“The current Act is from 1985, and the central bank’s tasks have since been affected by a range of developments, including the delegation of responsibility for the operational management of the Fund to Norges Bank at a time when virtually no one could foresee the complexity or size of today’s Fund,” says Minister Jensen.

The Commission, which was chaired by former central bank governor and former secretary general of the Ministry of Finance Svein Gjedrem, was appointed on 10 April 2015 to review the Norges Bank Act in the light of the considerable changes in the tasks of the central bank. The Commission was also mandated to consider the governance structure of Norges Bank and the relationship between the central bank and the central government authorities, with regard for international practice in the area, including the use of policy committees. An important part of the mandate has been to assess the organisation of the management of the Government Pension Fund Global.

“I am looking forward to examining the Commission’s assessments and recommendations. Norges Bank has been successful in performing its central banking and investment management tasks. At the same time, Norges Bank’s scope of responsibilities is substantial. The mandate was designed to be forward-looking, and the Commission’s task has been to assess whether today’s organisation is best suited also when looking ahead. The Report will form an important part of the basis for addressing an issue of such importance,” says the Minister.

The Report will be circulated for comment today.

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