Banking Law in Norway

Banking Law in Norway

Updated on Thursday 15th June 2017

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Banking Law in Norway

Bank regulations in Norway are set in order to ensure consumer protection and reduce social inefficiencies of the banking market. Asymmetries in information can also lead to unbalance in the banking sector thus increasing the failure rate.

Our law firm in Norway can provide a detailed description of the Norwegian regulations regarding banking thus giving you a valuable overview on the financial regulations in this country.

Main regulatory policies in the banking system of Norway

Foreign investors in Norway and business developers rely in great measure on the banking system of this country. Regulating the banking system is a way to prevent crisis and reduce overall risks for companies as well as individual persons. The following list provides you the main regulatory tools for banks in Norway
  • Introduction of deposit guarantee schemes;
  • Developing emergency borrowing facilities; 
  • Introduction of capital requirements;
  • Making specific requirements concerning liquidity. 
Our Norwegian lawyers can help you understand those aspects of Banking Act in Norway which may be of immediate concern for your business in this country.

More details concerning Banking law in Norway

If you start a company in Norway and make capital deposit with one of the local banks, you need to be informed on the state insurance policy for deposited money of enterprises. The Financial Supervisory authority of Norway (‘FSaN’) is the regulatory body in matters of financial stability monitoring the good functioning of the market.
The Norwegian government has imposed mandatory insurances for deposits, in all the banks of the country. This measure represents a national decision responding to the EU Directive 94/19/EC
The capital requirements in Norway refer to the obligation of the bank to maintain a minimum of 8% of the total capital deposited by a company, so that it can be available in case of risk. A risk buffer of up to 3% can be additionally required in case the authorities consider such a measure to be necessary. 
In Norway, each bank is obliged to become member of the Banks’ Guarantee Fund, a fund which is financed through the fees paid by the Norwegian banks. The fee is calculated according to the particular capital of each bank and to its guaranteed deposits.
Feel free to contact our attorneys in Norway for any issues regarding the application of banking provisions in this country.