Norway's Department of Finance has adopted regulatory amendments clarifying which funds linked to an insolvent bank may be used to settle payments in an interbank system, and confirming that the existing settlement framework also applies to cash settlement in interbank systems. The amendments update the 2016 regulation issued under the Payment Systems Act on the implementation of securities settlement in situations where a participant is placed into insolvency proceedings. Following consultation on a Norges Bank note, the Department aligned the regulation with Norges Bank’s proposal and codified existing practice by specifying that deposits on settlement accounts at Norges Bank or another settlement bank can be used to complete interbank settlement on the same business day that insolvency proceedings are initiated.
Department of Finance (Norway) 2025-01-24
Norway's Department of Finance amends settlement regulation to clarify same-day interbank settlement using deposits when a bank enters insolvency
Norway's Department of Finance has amended regulations to clarify using funds from insolvent banks for interbank settlements, confirming the existing settlement framework's applicability to cash settlements. The amendments update the 2016 regulation under the Payment Systems Act, aligning with Norges Bank's proposal to allow deposits on settlement accounts for same-day interbank settlements when insolvency proceedings begin.