Norges Bank has decided to introduce central bank certificates as a new liquidity management instrument. The decision was prompted by the considerable increase in structural liquidity in recent years, and the use of central bank certificates to withdraw excess liquidity will strengthen attainment of liquidity policy objectives.

Central bank certificates will be in addition to the instruments currently used by Norges Bank to manage liquidity in the banking system. The quota system will remain in place, and Norges Bank will continue to manage short-term liquidity fluctuations with F-loans and F-deposits. Central bank certificates will be used to withdraw central bank reserves over longer periods and be made available for purchase by both banks and other non-bank investors (the general public).

By issuing tradable central bank certificates, Norges Bank offers investments that are available to both banks and the general public. This can help strengthen the market's role in setting the price of liquidity and support well-functioning money markets when structural liquidity is high. However, this requires the certificates to be designed such that they are an attractive investment alternative, in addition to a well-functioning certificate market.

More information about the background to adopting central bank certificates is provided in the attached consultation note.

Norges Bank requests input on the design of the certificate programme no later than 20 November 2025. Please send the response to likviditet@norges-bank.no, with the subject "Consultation on the issuance of central bank certificates". The consultation is open, and anyone with views on the matter can provide input. The consultation responses will be published on Norges Bank's website.

Sincerely

Gaute Langeland
Executive Director

Ketil Johan Rakkestad
Director