Two-year F-loan for small banks
Banks will be offered an F-loan in Norges Bank with a maturity of two years. The loan will be effective as from mid-November 2008.
The Ministry of Finance has today offered banks the possibility of swapping covered bonds for government securities (see separate press release from The Ministry of Finance). The two-year loans offered by Norges Bank will complement these swap agreements and are particularly designed to secure funding for small banks.
- The overall effect of these measures will be to make it considerably easier for banks to fund their activities, says Governor Svein Gjedrem.
F-loans are fixed-rate loans offered on market terms. They are extended to banks operating in Norway and are provided against collateral in the form of securities.
The maximum bid for a two-year loan will be NOK 1 billion. At the same time, collateral requirements for banks’ loans in Norges Bank will be lowered by removing the requirement of a minimum volume outstanding of NOK 300 million for securities issued in NOK.
More details and times of auctions and loans will be published on Norges Bank’s website shortly.
Press telephone: +47 21 49 09 30