The Financial Supervisory Authority of Norway has published three conference presentations covering the banking outlook, its first year of supervision under the Digital Operational Resilience Act and findings from inspections of small and medium-sized banks. The presentations show profitable Norwegian banks with stable capital and low losses, but identify persistent weaknesses in credit risk management, ICT governance and oversight of third-party providers amid a changing market risk environment. Hanne Teigland, senior adviser at the authority, reported that most firms have conducted gap analyses and updated governance documents for DORA, which introduced more detailed, rule-based requirements and extensive incident reporting through Altinn. Supervisory findings remain concentrated on ICT governance and control, with policies often insufficiently tailored or operationalized and third-party risk management still developing. Carl Gunnar Lunde, supervisory adviser, highlighted weak credit documentation and insufficiently operational credit limits at smaller banks, alongside property exposure, delayed identification of distressed borrowers, model and judgment risk under IFRS 9, concentration risk and operational vulnerabilities. The authority stressed that proportionality affects how firms meet DORA requirements, not which requirements apply. Per Mathis Kongsrud, director general of the authority, said banks face vulnerabilities from commercial real estate and property development, elevated valuations in parts of the equity market and a new cost shock following the closure of the Strait of Hormuz. The authority has completed six burden-reduction measures in 2026 and is examining further simplification of sector rules, while maintaining international standards and national room for crisis management. It will also run a pilot in fall 2026 to test whether a bank’s data room can support the independent valuation needed for resolution or winding up.
2026-09-14Norwegian Finanstilsynet
Financial Supervisory Authority of Norway publishes DORA and bank supervision findings, flags governance and property risks
The Financial Supervisory Authority of Norway has published supervisory findings showing that banks remain profitable and well capitalized but face property, market and operational risks. Under DORA, firms have made substantial implementation progress, although ICT governance, operationalization of policies and third-party oversight remain weak. Inspections of smaller banks also found shortcomings in credit controls, documentation, distressed exposure monitoring and concentration risk management.