Payment systems and settlement system
Norges Bank settles interbank payments in banks' accounts at Norges Bank, and supplies society with banknotes and coins in a manner that promotes payment system efficiency. Norges Bank also oversees Norwegian payment systems with the aim of strengthening financial stability by promoting the robustness and efficiency of the systems. While this work is primarily aimed at minimising risk in interbank clearing and settlement systems, Norges Bank also monitors important trends in payment systems as a whole.
Norges Bank is the ultimate settlement bank for interbank payments in Norway. This task is related to Norges Bank's responsibility under the Norges Bank Act to promote an efficient payment system in Norway and vis-à-vis other countries, and to banks' right to hold accounts and raise loans at Norges Bank. Because the central bank issues money, central bank deposits do not involve credit or liquidity risk for banks. The interest rate on central bank deposits therefore provides a basis for interest rate formation throughout the economy.