Revised terms and conditions for account management at Norges Bank (NBO) - Banks
On 1 January 2019, new rules in the Financial Institutions Act on resolution of banks enter into force. Under the new rules, a failing bank may be subject to resolution to ensure continuation of the bank's operations. Alternatively, the bank may be wound up under public administration. The changes in the Act derive from the transposition into Norwegian law of the EU Bank Recovery and Resolution Directive (BRRD).
The new rules on resolution in the Financial Institutions Act (cf Chapter 20 on Capital inadequacy and insolvency at banks, mortgage companies and financial groups) require certain adjustments to the Terms and Conditions for Account Management at Norges Bank (NBO) – Banks. The terms insolvency proceedings and winding-up under public administration have thus been defined more precisely in Section 1.4, Section 5.6, subsection c, and in Section 7, third paragraph.
In addition to the changes deriving from the new legal provisions on resolution of banks, a clarification has been added in Section 2.3, second sentence, on collateral accounts at Norges Bank – Scandinavian Cash Pool.
The revised Terms and Conditions for Account Management at Norges Bank (NBO) - Banks enter into force on 1 January 2019 and replace the current Terms and Conditions of 18 June 2018 (cf Circular 2/2018).
Norges Bank will issue more specific information on how the resolution or, if necessary, the winding-up of a bank will be handled in Norges Bank's settlement system (NBO).