Central bank certificates as a new liquidity management instrument
Structural liquidity in the banking system has increased in recent years. Currently, Norges Bank withdraws excess liquidity through short-term F-deposits, which have characteristics similar to free central bank reserves. Due to the quantity of excess liquidity, the use of F-deposits as an instrument for withdrawing liquidity is not sufficient to ensure that Norges Bank's liquidity policy objectives are met.
Norges Bank will therefore introduce negotiable central bank certificates as a new instrument to withdraw excess liquidity. The quota system will remain in place and short-term structural liquidity fluctuations will be managed through F-auctions.
The arguments for this decision are explained in a consultation letter sent to Finance Norway, the Norwegian Fund and Asset Management Association, the Norwegian Securities Markets Association, the Ministry of Finance and Finanstilsynet (Financial Supervisory Authority of Norway), which is published on Norges Bank's website.
To ensure that central bank certificates become an attractive investment option for both banks and other investors, Norges Bank is requesting input from market participants on the final design of the certificate programme. The consultation is open, and anyone with views on the matter can provide input. The consultation deadline is Thursday 20 November 2025.