The Financial Supervisory Authority of Norway published its quarterly review of financial institutions’ use of the flexibility quotas under Norway’s Lending Regulations, showing a mixed picture across loan types in Q2 2025. The share of new residential mortgages outside Oslo that deviated from the regulation’s requirements increased slightly from Q1 2025, while the deviation share for residential mortgages in Oslo was unchanged. Deviations fell for new consumer loans, but rose slightly for loans secured on collateral other than housing. Residential mortgages, consumer loans and loans secured on collateral other than housing are covered by the Lending Regulations, which allow institutions to grant some loans that exceed one or more regulatory requirements within a flexibility quota. The summary reflects data Finanstilsynet collects each quarter from a selection of Norwegian and foreign financial institutions on total lending volumes and volumes granted in deviation from individual regulatory requirements; institutions are also required to report quarterly on flexibility quota use to their board, or to management in the case of foreign institutions. The release notes that the Ministry of Finance amended parts of the Lending Regulations in December 2024, effective from 31 December 2024, including raising the maximum loan-to-value limit from 85% to 90%.
Norwegian Finanstilsynet 2025-08-20
Financial Supervisory Authority of Norway reports higher mortgage rule deviations outside Oslo and lower consumer loan deviations in Q2 2025
The Financial Supervisory Authority of Norway's quarterly review highlights a mixed use of flexibility quotas under the Lending Regulations in Q2 2025. Deviations in new residential mortgages outside Oslo increased slightly, while those in Oslo remained unchanged. Deviations for consumer loans decreased, but rose slightly for loans secured on non-housing collateral.