Countercyclical buffer unchanged

The Ministry of Finance has today decided to keep the level of the countercyclical capital buffer for banks unchanged. This is in line with the advice for Q2/17 from Norges Bank - reports Government.no.

Each quarter, The Ministry of Finance shall make a decision on the level of the countercyclical buffer. The Ministry of Finance decided on the 15 December 2016 that banks shall hold a countercyclical buffer of 2 percent from the 31 December 2017. Today, the countercyclical buffer requirement is set at 1,5 percent.

The purpose of the countercyclical capital buffer is to strengthen the financial soundness of banks and their resilience to loan losses in a future downturn and mitigate the risk that banks will amplify a downturn by reducing their lending. Banks should hold a countercyclical capital buffer when financial imbalances are building up or have built up. High property price inflation over a long period and a persistent rise in household debt ratios suggest that financial imbalances have built up.

Each quarter, Norges Bank shall draw up a basis for the decision on the level of the countercyclical capital buffer, and provide an assessment and advice about the level of the countercyclical buffer. In a letter from the 21 June 2017 Norges Bank has advised the Ministry to keep the countercyclical buffer unchanged. Norges Bank's decision basis is published in the Monetary Policy Report with financial stability assessment 2/17. The Financial Supervisory Authority has stated that it concurs with the advice.

Read other news on the city site of Oslo.

Government.no
Ministry_of_Finance_Norway NorgesBank Countercyclical_buffer
If you notice an error, highlight the text you want and press Ctrl + Enter to report it to the editor
1 view in february
I recommend
No recommendations yet

Comments

Post your comment to communicate and discuss this article.

Society
Euronext operates stock exchanges in Paris, Amsterdam, Brussels, Dublin and Lisbon. In a statement, the operator said it had approached the board of directors of the Oslo Stock Exchange (Oslo Bors VPS) to seek its support for a tender offer of 625 million euros for all outstanding shares in the bourse. "Euronext strongly believes that Oslo Bors VPS' unique strategic and competitive positioning, including a global leading position in seafood derivatives and...
Society
The Abortion Act is one of the most controversial issues during the Government negotiations that started on Hadeland yesterday. NTB has talked to several who were on the «red» side in the struggle for the Christian Democrats’ choice of direction. That ended up with a «blue» victory as most are aware. Not least because of Deputy Leader Kjell Ingolf Ropstad singled out that it presented a «historic opportunity» to make changes to the Abortion Act’s section 2...
Society
A Morocco prosecutor on Sunday presented to an anti-terror judge 15 people suspected of links to the murder of two Scandinavian women in the Atlas Mountains, Rabat's attorney general said. The prosecution asked that the suspects be investigated for "setting up a gang to prepare and commit terrorist acts", "premeditated attacks on life" and "advocating for terrorism", the attorney general said. Seven other detainees will be referred to the prosecution in th...
Society
Lower Norwegian King Crab quotas in 2019 The total Norwegian quota for male King Crabs has been set at 1400 tonnes for 2019. This is a decrease of 350 tonnes from 2018. The Ministry of Fisheries simultaneously warns of tighter control of the industry.   – In recent years we have had a very high degree of harvesting of King Crab. Now the researchers say that if this continues, it will lead to a collapse of the stock. That will not happen. We will continue t...
Society
Dreary news from around the world As Christmas peace descends on those fortunate to live in a peaceful corner of Tellus, it is business as usual, out in the ”real” world. Death toll rises after an attack on Government buildings in Kabul 43 people have been killed following an attack on Government offices in Kabul, Afghanistan on Christmas Eve, the authorities state. At least ten people are injured. Most people killed are employees of the Ministry of Labour...
Society
Heavy winds, avalanche and landslide hazards and slippery roads create problems in several places in Norway on Christmas day. – Drive extremely cautiously, the police urges.   Slippery roads, closed Mountain crossings and bad weather In Voss, one of several areas where, according to the Norwegian Water Resources and Energy Directorate (NVE), there is a considerable landslide hazard on Christmas Day, a two-cubic meter block of ice fell on the E16 at Evanger...
Society
Since 1999, the average American has become heavier and shorter according to a state health study. By 2015, the average height Americans around the country were 175.4 centimetres, two millimetres shorter than at the start of the study in 1999. American women were also two millimetres shorter. The study also shows that American men and women have become around three kilograms heavier on average since 1999. The average American woman now weighs 77 kilograms,...
Society
PFU believes that iTromsø, Dagsavisen and Harstad Tidende have violated good press coverage in their writing surrounding sexual harassment allegations against former Progress Party Youth (FpU) Deputy Leader, Kristian Eilertsen. The cases ended with that Eilertsen received a warning from the Progress Party’s organisation committee, without being deprived of office nor imposed with other sanctions. Eilertsen reacted to the coverage of the matter in iTromsø,...
Society
The European Union on Tuesday published further contingency plans for a "no-deal" Brexit, piling pressure Prime Minister Theresa May by warning that Britons will lose a host of travel rights from recognition of driving licences to lower credit card fees and no mobile roaming charges. The European Commission, the bloc's executive arm, said that, while it is working hard for a deal, it must prepare for "all outcomes" and "contingency measures in narrowly def...