Norges Bank

Economic Commentaries

How is market turbulence affecting Norwegian banking groups' funding costs?

Author:
Jermund Molland and Monique Erard
Series:
Economic Commentaries
Number:
7/2012

Recent years' turbulence in financial markets has led to changes in funding conditions for Norwegian banking groups. Through 2008, risk premiums on banking groups' bond funding rose sharply. After falling back and stabilising somewhat, premiums rose again from summer 2011. As banking groups must replace bonds issued prior to 2008, the average cost of bond funding rises, pushing up banking groups' total funding costs.

This series consists of short, signed articles on current economic issues and are only published on Norges Bank’s website.

Published 18 May 2012 15:15
Published 18 May 2012 15:15