News story | Date: 02/02/2021
Today, the Ministry of Finance has requested the European Systemic Risk Board (ESRB) to issue a recommendation to other EEA states to reciprocate Norwegian capital requirements for banks. The request concerns the new systemic risk buffer requirement and temporary risk weight floors for real estate exposures.
On 8 December 2020, the Ministry of Finance adopted amendments to the capital requirements for Norwegian banks from year-end 2020. A new systemic risk buffer requirement was set at 4.5 per cent for domestic exposures. Moreover, the Ministry adopted temporary floors for average risk weights for Norwegian residential and commercial real estate exposures.
As noted in the December press release, the Ministry has today requested the ESRB to issue a recommendation to other EEA states to reciprocate the Norwegian requirements.