Present:

Executive Board:
Øystein Olsen, Jon Nicolaisen, Egil Matsen (items 72-81), Kjetil Storesletten, Karen Helene Ulltveit-Moe, Kathryn M. Baker, Steinar Juel and Kristine Ryssdal

Alternates:
Arne Hyttnes and Kristine Landmark

Employee representatives:
Mona H. Sørensen (items 80-87) and Kjersti-Gro Lindquist (items 80-90)

Office of the Supervisory Council:
Jan Frode Jakobsen (items 73, 75-78, 80-84 and 87-89)

Deloitte:
Henrik Woxholt (items 75-77 and 89)

Management:
Ørjan Agdesteen (items 73, 77 and 89), Ida Wolden Bache (item 72), Olav Bø (items 72-73 and 86), Lars Dahl (item 75), Hege Gjerde (items 77, 84 and 89), Trond Grande (items 75-85 and 87), Anders Grønli (item 88), Bjarne Gulbrandsen (items 72-76 and 78-90), Carl-Axel Hagen (item 88), Renate Haugen (items 85-86), Pål Haugerud (items 80-85), Jane Haugland (items 87-89), Stephen Hirsch (item 83), Mie Holstad (items 80-82), Dag Huse (items 73, 76-77), Torbjørn Hægeland (item 88), Karsten Kallevig (items 76-77 and 80-82), Per Gunnar Bull Karlsen (item 73), Runar Malkenes (items 85-90), Kyrre Nilsen (items 72-78 and 80-90) Gillean Dean Nordal (items 85-86), Arne Osnes (item 73), Kjetil Johan Rakkestad (item 86), Roger Rake (item 86), Charlotte Renshusløkken (item 86), Merethe Riddervold (items 76-78, 83-85 and 88-89), Ingrid Rogne (item 87), Marius Ryel (item 87), Yngve Slyngstad (items 75-85 and 87), Jan Thomsen (items 80-81 and 88), Ingunn Valvatne (items 73, 75-78 and 80-89), Birger Vikøren (items 73-84 and 88-90)  

There were no comments on the meeting notice and agenda.

Item 72/2019   Response to Monetary Policy Report and interest rate decision – Monetary policy meeting of 20 March 2019

Discussion document:

• Memo from Monetary Policy of 12 April 2019

Ida Wolden Bache presented the matter for discussion and the Executive Board took note of the matter.

Item 73/2019  Financial risk and management of the foreign exchange reserves 2019 Q1

Discussion documents:

• Memo from Markets and ICT of 12 April 2019
• Memo from the Risk and Investment Committee of 24 April 2019
• Memo from the Audit Committee of 23 April 2019

Olav Bø presented the main elements of the report.

Karen Helene Ulltveit-Moe and Egil Matsen presented the discussion in the Audit Committee and the Risk and Investment Committee, respectively, and the topics that particularly drew their attention, including a new section on costs and quarterly facility reporting. The committees recommended that the Executive Board follow management’s guidance.

The Executive Board took note of the report on financial risk and management of the foreign exchange reserves for the first quarter of 2019. A public version of the report is to be published on Norges Bank's website on 10 May 2019.

Item 74/2019   Briefing on current issues in Norges Bank Central Banking Operations (NBCBO) 

The Governor and Deputy Governors gave a briefing on relevant matters in NBCBO.

Item 75/2019  Norges Bank Real Estate Management (NBREM) – return and risk 2019 Q1

Discussion documents:

• Memo from NBREM of 12 April 2019
• Memo from the Risk and Investment Committee of 24 April 2019

Lars Dahl presented the main elements of the report.

Egil Matsen reported on the Risk and Investment Committee’s discussions and the issues of particular concern to the Committee. The Committee recommended that the Executive Board follow management’s guidance.

The Executive Board took note of NBREM's report on return and risk for unlisted real estate management for the first quarter of 2019. 

Item 76/2019   Norges Bank Investment Management (NBIM) – return and risk 2019 Q1

Discussion documents:

• Memo from NBIM of 17 April 2019
• Memo from the Risk and Investment Committee of 24 April 2019

Dag Huse presented the main elements of the report.

Egil Matsen reported on the Risk and Investment Committee’s discussions and the issues of particular concern to the Committee, including the contributions to excess return from the different strategies. The Committee recommended that the Executive Board follow management’s guidance.

The Executive Board took note of NBIM's report on return and risk for the first quarter of 2019.

Item 77/2019  Government Pension Fund Global (GPFG) – Public report for 2019 Q1

Discussion documents:

• Memo from NBIM of 23 April 2019 (entire report)
• Memo from NBIM of 17 April 2019 (financial reporting only)
• Memo from the Audit Committee of 23 April 2019

Yngve Slyngstad and Trond Grande presented the main elements of the report.

Karen Helene Ulltveit-Moe presented the discussions in the Audit Committee and the topics that particularly drew its attention, including developments in capital gains and withholding tax in some markets. The committee recommended that the Executive Board follow management’s guidance.

Henrik Woxholt confirmed that nothing had come to Deloitte’s attention during its review causing it to believe that the interim financial information had not in all material respects been prepared in accordance with relevant accounting standards.

The Executive Board approved the public report on the management of the Government Pension Fund Global (GPFG), including the interim financial reporting for the investment portfolio, for 2019 Q1.

Item 78/2019   Revision of mandates for the Executive Board’s subcommittees and job description of the CEO of NBIM

Discussion documents:

• Memo from the General Secretariat of 12 April 2019
• Memo from the Risk and Investment Committee of 24 April 2019
• Memo from the Remuneration Committee of 25 April 2019

Egil Matsen and Arne Hyttnes presented the discussions in the Risk and Investment Committee and the Remuneration Committee, respectively.

The Executive Board approved changing the mandates for the Risk and Investment Committee, the Remuneration Committee and the job description of the CEO of NBIM in line with the proposal. A specification is included in Item 5, next to last bullet point, of the mandate for the Risk and Investment Committee stating that this change applies to unlisted real estate investments.

Item 79/2019   Briefing on current issues in investment management 

Yngve Slyngstad gave a briefing on current issues in investment management.

Item 80/2019   Minutes of the Executive Board meeting of 20 March 2019

Discussion document:

• Draft minutes

The Executive Board approved the minutes of its meeting of 20 March 2019.

Item 81/2019   NBREM compliance and control 2019 Q1

Discussion documents:

• Memo from NBREM of 12 April 2019
• Memo from the Audit Committee of 23 April 2019

Jan Thomsen presented the key elements of the report.

Karen Helene Ulltveit-Moe presented the discussions in the Audit Committee and the topics that particularly drew its attention. The committee recommended that the Executive Board follow management’s guidance.

The Executive Board discussed the matter and took note of the report on compliance and control for unlisted real estate management for the first quarter of 2019.

Item 82/2019   Norges Bank Real Estate Management (NBREM) operations report 2019 Q1

Discussion document:

• Memo from NBREM of 12 April 2019  
   

Mie Holstad presented the main elements of the report.

The Executive Board took note of the operations report for unlisted real estate management for 2019 Q1.

Item 83/2019   NBIM compliance and control 2019 Q1

Discussion documents:

• Memo from NBIM of 17 April 2019
• Memo from the Audit Committee of 23 April 2019

Stephen Hirsch presented the main elements of the report.

Karen Helene Ulltveit-Moe reported on the Audit Committee’s discussions and the issues of particular concern to the Committee. The committee recommended that the Executive Board follow management’s guidance.

The Executive Board exchanged views and took note of the report on compliance and control at NBIM for the first quarter of 2019.

Item 84/2019   NBIM operations report 2019 Q1 2019

Discussion document:

• Memo from NBIM of 17 April 2019 

Trond Grande presented the main elements of the report.

The Executive Board took note of the operations report for NBIM for the first quarter of 2019.

Item 85/2019    Application of the remuneration scheme in Norges Bank Investment Management (NBIM)

a. Annual report on the application of the remuneration scheme in NBIM in 2018

Discussion documents

• Memo from NBIM of 17 April 2019
• Memo from the Remuneration Committee of 25 April 2019

b. Independent statement on NBIM’s compliance with the remuneration regulation and the general guidelines for remuneration issued by the Executive Board

Discussion document
Memo from Internal Audit of 17 April 2019

Trond Grande introduced the topic. Gillean Nordal presented Internal Audit’s control and statement on the application of the scheme.

Arne Hyttnes reported on the Remuneration Committee’s discussions. He also reported that the committee had requested and received supplementary briefing on the criteria for calculating a variable salary scheme for employees within different groups. The committee recommended that the Executive Board follow management’s guidance.

The Executive Board took note of the report on the application of the remuneration scheme at NBIM in 2018. The Executive Board noted that the application of the scheme complies with the remuneration provisions in the mandate, the Financial Institutions Regulation and the general guidelines issued by the Executive Board. The Executive Board also noted Internal Audit’s statement that the report provides a fair view of its application.

Item 86/2019    Application of the bonus scheme in Norges Bank’s Central Banking Operations (NBCBO)

a. Report on the application of the bonus scheme in NBCBO in 2018

Discussion documents:

• Memo from Markets and ICT of 12 April 2019
• Memo from the Remuneration Committee of 25 April 2019

b. Independent statement on NBCBO’s compliance with the general guidelines for remuneration laid down by the Executive Board

Discussion document

• Memo from Internal Audit of 11 April 2019

Olav Bø introduced the matter. Gillean Nordal presented Internal Audit’s control and statement on the application of the scheme.

Arne Hyttnes reported on the Remuneration Committee’s discussions. The Committee recommended that the Executive Board follow management’s guidance.

The Executive Board took note of the report on the application of the bonus scheme in NBCBO in 2018. The Board noted Internal Audit’s statement that the report provides a true and fair view of its application. The Board also noted that the application of the scheme complies with the general guidelines issued by the Executive Board.

Item 87/2019  Proposal on a new central bank act - Prop. 97 L (2018- 2019) – Information item

Discussion document

• Memo from the General Counsel of 12 April 2019 

The Governor and Marius Ryel presented the topic.

The Executive Board exchanged views and took note of the presentation.

Item 88/2019    Identifying national critical functions in the Ministry of Finance’s sector (scope of the Security Act) 

Discussion document:

• Memo from Corporate and Shared Services of 23 April 2019

The Governor introduced the topic and Carl-Axel Hagen presented the matter for discussion.

The Executive Board discussed the matter and took note of the draft response to the Ministry of Finance about national critical functions in the Ministry of Finance’s sector.

Item 89/2019    Audit report for Norges Bank for 2018 from Deloitte AS

Discussion documents

• Memo from Corporate and Shared Services of 12 April 2019
• Memo from the Audit Committee of 23 April 2019 

Henrik Woxholt from Deloitte presented the contents of the report.

Karen Helene Ulltveit-Moe outlined the discussions in the Audit Committee. The committee recommended that the Executive Board follow management’s guidance.

The Executive Board took note of the audit report for Norges Bank for 2018 from Deloitte AS.

Item 90/2019   Any other business 

The Executive Board discussed the media coverage of the budget process.

The Executive Board asked management to prepare guidelines on the use of mobile devices in subcommittee meetings and for Executive Board members when travelling. 

The following were distributed for information together with the discussion documents:

• Letter to the Ministry of Finance of 22 March 2019 – Rule for rebalancing the equity share in the GPFG
• Letter from the Ministry of Finance of 11 April 2019 – Appointment of members of the Council on Ethics
• Norges Bank’s Supervisory Council – Report to the Storting for 2018 (Document 9 2018-2019)
• NBIM Report – GPFG Performance and Risk – March 2019
• Agenda – Executive Board seminar of 25 April 2019.