Liquidity and markets
Information to banks and the market.
Norges Bank's settlement system
The purpose of Norges Bank's settlement system is to promote an efficient payment system domestically and vis-à-vis other countries by settling payments between banks in a swift and secure manner.
Collateral for banks' loans
Advice on the countercyclical capital buffer
The decision basis is published as part of Norges Bank's Monetary Policy Report. Advice on the level of the countercyclical capital buffer and a summary of the background for the advice are submitted to the Ministry of Finance in connection with the publication of the Report. The advice is published when the Ministry of Finance has made its decision.
Government debt management
The Ministry of Finance is responsible for managing Norway's government debt, but has delegated operational tasks to Norges Bank. Under a mandate laid down by the Ministry, the Bank shall meet the government's borrowing requirements and manage government debt outstanding.
Norges Bank’s foreign exchange transactions with the Government Pension Fund Global
The Norwegian government receives substantial revenues from petroleum activities (referred to as the government's net cash flow). These revenues are in both NOK and foreign currency. Revenues in NOK primarily comprise oil taxes and dividend from Statoil, while revenues in foreign currency comprise revenues from the government's own petroleum activities via the State's Direct Financial Interest (SDFI). At the same time, the government receives substantial income in foreign currency in the form of returns on the Government Pension Fund Global (GPFG). Some of this income is used each year to finance the non-oil budget deficit in line with the fiscal rule. Norges Bank has been tasked by the Ministry of Finance to carry out the foreign exchange transactions associated with petroleum fund mechanism.
The liquidity management system
Norges Bank uses market operations to steer bank reserves towards a desired level, primarily using fixed-rate loans (F-loans) and fixed-rate deposits (F-deposits).
Lender of last resort
Norges Bank can provide extraordinary liquidity to the entire banking system or individual banks when access to liquidity from other sources is impaired. The extraordinary liquidity that Norges Bank can provide may prevent financial problems from spreading and thus prevent a broader crisis from arising.