Norges Bank

Press release

Advice on the countercyclical capital buffer 2017 Q4

Norges Bank has advised the Ministry of Finance to keep the countercyclical capital buffer unchanged at 2 percent, effective from the end of 2017.

Financial imbalances have built up, owing to a persistent rise in household debt ratios and high property price inflation over a long period. Low house price inflation will have a dampening impact on household debt accumulation, but it will take time for household sector vulnerabilities to recede.

"Household credit growth remains high, but the decline in house prices in 2017 has reduced the extent of a fall in the housing market", says Governor Øystein Olsen.

Bank losses are low and banks have built up capital buffers that can absorb losses in the event of a downturn in the Norwegian economy. Creditworthy enterprises appear to have ample access to credit.

In line with Norges Bank's advice, the Ministry of Finance decided today to keep the buffer rate unchanged at 2 percent from the end of 2017.

Contact:

Press telephone: +47 21 49 09 30
Email: presse@norges-bank.no

Published 14 December 2017 10:02

Press conference 14 December

Published 14 December 2017 10:02