Press release

Advice on the countercyclical capital buffer 2017 Q3

Norges Bank has advised the Ministry of Finance to keep the countercyclical capital buffer for banks unchanged at 2 percent, effective from the end of 2017.

A persistent rise in household debt ratios and high property price inflation over a long period suggest that financial imbalances have built up. Financial imbalances increase the risk of an abrupt decline in demand and bank loan losses. House prices have long risen considerably more than household disposable income, but house price inflation has slowed considerably since the turn of the year.

"Household debt growth remains high, and it will take time for household sector vulnerabilities to recede. The correction in the housing market may lower the risk of an abrupt and more pronounced decline further out", says Governor Øystein Olsen.

In line with Norges Bank's advice, the Ministry of Finance decided today to keep the buffer rate unchanged at 2 percent from the end of 2017.

For more information, please contact:

Press service
Phone: +47 21 49 09 30
E-mail: presse@norges-bank.no

Bård Ove Molberg
E-mail: bard-ove.molberg@norges-bank.no
Mobile: +47 95 02 15 23

Andreas Andersen
E-mail: andreas.andersen@norges-bank.no
Mobile: +47 98 84 86 44

Published 21 September 2017 10:01
Press conference 21 September 2017 (in Norwegian)