Regulation on Decisions on the Countercyclical Capital Buffer and Advice on the Systemic Risk Buffer
Laid down by Royal Decree of 3 September 2021 pursuant to Section 2 of the Act of 7 December 1956 No. 1 relating to the Supervision of Credit Institutions, etc. (Financial Supervision Act), Section 14-3 (cf Section 1-7) of the Act of 10 April 2015 No. 17 relating to Financial Institutions and Financial Groups (Financial Institutions Act) and Sections 1-5 and 1-10 of the Act of 21 June 2019 No. 31 relating to Norges Bank and the monetary system, etc (Central Bank Act). Put forward by the Ministry of Finance.
The Ministry’s authority under Section 14-3, fourth paragraph, second sentence, of the Financial Institutions Act to by regulation set the countercyclical capital buffer requirement, is delegated to Norges Bank. Each quarter, Norges Bank shall issue a decision on the level of the countercyclical capital buffer for exposures in Norway under Section 34 of the CRR-CRD IV Regulation. Norges Bank may issue a decision on a different countercyclical capital buffer rate in a state that is not a party to the EEA Agreement, under Section 3, fourth paragraph, of the CRR-CRD IV Regulation.
Each quarter, Norges Bank shall draw up and publish a basis for decisions under Section 1. In drawing up the basis, Norges Bank shall exchange relevant information and assessments with Finanstilsynet (Financial Supervisory Authority of Norway). If Norges Bank issues a decision to reduce the countercyclical capital buffer rate, the decision basis shall contain an estimate of when Norges Bank will increase the buffer.
Every other year, the Ministry of Finance issues a decision on the level of the systemic risk buffer for exposures in Norway under Section 28 of the CRR/CRD IV Regulation.
At least every other year, Norges Bank shall prepare a decision basis on the level of the systemic risk buffer. In drawing up the basis, Norges Bank shall exchange relevant information and assessments with Finanstilsynet (Financial Supervisory Authority of Norway). The decision basis shall contain analyses based on relevant indicators, recommendations and guidance from the European Systemic Risk Board (ESRB) and Norges Bank’s assessment of structural vulnerabilities and other systemic risk of a permanent nature.
At least every other year, Norges Bank shall provide advice to the Ministry of Finance regarding the decision on the level of the systemic risk buffer.
This regulation enters into force on 10 September 2021. From the same date, the Regulation of 13 December 2019 No. 1776 on the decision basis and advice on the countercyclical capital buffer is repealed.