Norges Bank

Circular 1/2018

Quotas in the system for the management of bank reserves


Under the current system for managing banks’ reserves, interest is paid at the key policy rate on a certain portion of the reserves – a quota. Deposits in excess of the quota are remunerated at a lower rate – the reserve rate. Norges Bank will normally assess the total quota and its distribution among banks twice a year.

The following applies as from 3 April 2018:

  • Norges Bank will seek to maintain reserves in the banking system at an average NOK 35 billion with a symmetrical interval of ±5 billion around this level.
  • The sum of banks’ quotas, the total quota, is set at NOK 45 billion.

Banks are divided into three groups where all banks in the same group are assigned the same quota, with the exception of settlement banks which are assigned higher quotas. The banks are divided into groups as follows (Table 1):

Table 1. Division of banks into groups (as of February 2018) 

Group 1: Group 2: Group 3: All B-banks in NBO* (105 banks)
DNB Bank ASA** SpareBank 1 SR-Bank ASA  
Nordea Bank Norge AB (publ), filial i Norge NUF SpareBank 1 SMN**  
Danske Bank NUF** Sparebanken Vest  
Handelsbanken NUF SpareBank 1 Østlandet  
Skandinaviska Enskilda Banken AB (publ) NUF SpareBank 1 Nord-Norge  
Swedbank NUF Sparebanken Sør  
  Sbanken ASA  
  Sparebanken Møre  
  Sparebanken Sogn og Fjordane  
  Sparebanken Øst  
  BNBank ASA  
  Storebrand Bank ASA  
  Sandnes Sparebank  
  BNP Paribas S.A. Norway Branch NUF  
  Citibank Europe PLC, Norway Branch NUF  

* Norges Bank Settlement system, ** Settlement bank

The quotas that apply as from 3 April 2018 are set on the basis of banks’ total assets as at 31 December 2017.  The quotas are distributed as follows (Table 2).

Table 2. Banks’ quotas to be applied as from 3 April 2018. In thousands of NOK

  Sum TA Share TA Sum quota
per group
Number banks Quota per bank
Group 1 3 354 609 980 65,5 % 29 491 397 6 4 900 000
Group 2 974 598 105 19,0 % 8 567 988 15 570 000
Group 3 789 486 372 15,4 % 6 940 615 105 66 000
Sum 5 118 694 457 100 % 45 000 000 126  

TA: Total assets

The settlement banks DNB, SpareBank 1 SMN and Danske Bank are assigned quotas as follows (Table 3).

Table 3. Quotas for settlement banks, DNB, SpareBank 1 SMN and Danske Bank*. In thousands of NOK

  Initial quota Supplement to quota Sum quota
DNB Bank ASA 4 900 000 1 300 000 6 200 000
SpareBank 1 SMN 570 000 580 000 1 150 000
Danske Bank NUF 4 900 000 100 000 5 000 000

*Settlement banks are assigned a supplementary quota determined by the size of the settlement bank in relation to the size of the B-banks or equivalent banks for which it executes settlements (as measured by total assets). If the estimated quota for the settlement bank is initially NOK K billion, its total assets NOK X billion and the sum of total assets of the B-banks is NOK Y billion, the settlement bank will be assigned a supplementary quota equal to K x (Y/X), but with an upper limit equal to the sum of the quotas for the B-banks for which it executes settlements. The settlement bank’s total quota will normally be equal to K+K x (Y/X).

For a further description of the system for the management of bank reserves, see Management of bank reserves: The system in Norway.

For a further discussion of the background for the new system, see Background for the system for the management of bank reserves in Norway.

Published 1 March 2018 10:00