Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure NO-2020-11/800 – measures in Norway
|Country||Norway , applies nationwide|
|Time period||Open ended, started on 13 March 2020|
|Type||Legislations or other statutory regulations|
Supporting businesses to stay afloat
– Access to finance
|Author||Aasmund Arup Seip, FAFO and Eurofound|
|Measure added||27 April 2020 (updated 05 May 2020)|
The Ministry of Finance has decided to follow Norges Bank's advice to reduce the countercyclical capital buffer requirement for banks from 2.5 to 1 per cent with immediate effect. In Norges Bank's estimation, there is a risk of a marked setback in the Norwegian economy as a result of the outbreak of the coronavirus. The buffer requirement is lowered to counteract a tightening of lending practices in the banks. The social partners have been consulted regularly during design and implementation of the measure.
Norges Bank’s Monetary Policy and Financial Stability Committee has decided to advise the Ministry of Finance to reduce the buffer rate to 1%. Norges Bank shall advice the Ministry of Finance on the level of the countercyclical capital buffer for banks. The countercyclical capital buffer rate is currently 2.5%. In recent weeks, there has been considerable financial market volatility.
The outbreak of coronavirus (COVID-19) and the measures to limit contagion will have a significant negative impact on growth in the Norwegian economy. There is substantial uncertainty about the duration and the consequences of the outbreak, with a risk of a pronounced economic downturn. Norwegian banks are solid. They have sufficient capital to absorb losses in the event of a severe downturn. A tightening of lending standards may, however, amplify the downturn in the economy. Against this background, the Committee has decided to advise the Ministry of Finance to reduce the buffer to 1% with immediate effect. The decision was unanimous.
No information to date.
|Does not apply to workers||
Sector specific set of companies
||Does not apply to citizens|
No special funding required
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Direct consultation outside a formal body||Direct consultation outside a formal body|
Social partners' role in the implementation, monitoring and assessment phase:
Social partners have been consulted regularly during design and implementation of the measure.
This case is sector-specific
|Economic area||Sector (NACE level 2)|
|K - Financial And Insurance Activities||K64 Financial service activities, except insurance and pension funding|
This case is not occupation-specific.
Eurofound (2020), Countercyclical capital buffer is reduced, measure NO-2020-11/800 (measures in Norway), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/NO-2020-11_800.html
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.