Countercyclical capital buffer 2015/Q1
Norges Bank has submitted its quarterly advice on the level of the countercyclical capital buffer requirement for banks to the Ministry of Finance. The advice will be published when the Ministry has issued its decision. The decision basis for Norges Bank's advice is presented in the March 2015 Monetary Policy Report.
Household debt is still growing somewhat faster than household income. Debt growth in the corporate sector is more moderate. Developments in overall credit do not, in isolation, suggest that financial imbalances have increased. On the other hand, house prices and the commercial property price indicator have risen markedly.
«The pronounced rise in property prices may lead to accelerating debt growth. The rise in house and commercial property prices may be a sign that financial imbalances are building up further", says Governor Øystein Olsen.
The buffer rate was set at 1 percent in December 2013, effective from 30 June 2015. The supplementary capital requirements for systemically important banks will increase further from summer 2016.
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Interest rate decision and Monetary Policy Report 1/15 (in Norwegian)