Mandate and core responsibilities
Norges Bank shall promote economic stability in Norway. Norges Bank has executive and advisory responsibilities in the area of monetary policy and is responsible for promoting robust and efficient payment systems and financial markets. Norges Bank manages Norway’s foreign exchange reserves and the Government Pension Fund Global.
Norges Bank is a separate legal entity owned by the state.
Norges Bank’s activities are regulated by the Norges Bank Act of 1985. The Act states that Norges Bank shall be an executive and advisory body for monetary, credit and foreign exchange policy. The Bank shall issue banknotes and coins, promote an efficient payment system domestically as well as vis-à-vis other countries, and monitor developments in the money, credit and foreign exchange markets. The Act authorises the Bank to implement measures customarily or ordinarily taken by a central bank.
The Government has defined an inflation target for monetary policy in a regulation pursuant to the Norges Bank Act.
Norges Bank’s responsibilities in managing the Government Pension Fund Global (GPFG) are regulated by means of regulations issued pursuant to the Act relating to the Government Pension Fund Global and a separate management agreement with the Ministry of Finance. See the Management mandate for the Government Pension Fund Global (NBIM).
Organisation of the bank’s operations is based on clearly defined core activities. Norges Bank shall:
- promote price stability by means of monetary policy
- promote financial stability and contribute to robust and efficient financial infrastructures and payment systems
- manage the portfolios of the GPFG and the bank’s own foreign exchange reserves in an efficient and confidence-inspiring manner.
Strategy for Norges Bank 2016-2019
Low interest rates, moderate growth, increased data coverage, new technology, new and more secure banknotes, prevention of systemic risk and strengthened contingency planning are among the key words as Norges Bank embarks on a new three-year strategy period. Underlying these words is an aim to be a transparent, modern and innovative central bank, also in the international arena.