The Financial Supervisory Authority of Norway has published an inspection report identifying shortcomings in DNB Bank’s retail mortgage lending, risk management and consumer protection controls. Its review found failures to follow the bank’s own credit policies and assessed that DNB’s use of a standard interest rate for mortgage stress testing does not comply with the Lending Regulations and the Financial Contracts Act. The bank must instead use the rate offered to the customer, and the authority will address this issue separately. Other credit findings included the potential overstatement of repayment capacity through standardized loan maturities and the treatment of rental income without allowing for vacant periods. The authority also called for clearer use of internal ratings based parameters in credit decisions and stronger controls as lending becomes more digital and automated. DNB must improve operational risk governance and reporting, complaint handling, support for customers in payment difficulty and oversight of outsourced debt collection. DNB must submit a status report on the identified issues as of March 31, 2027.
2026-09-23Norwegian Finanstilsynet
Financial Supervisory Authority of Norway finds shortcomings in DNB’s mortgage lending and consumer protection controls
The Financial Supervisory Authority of Norway found shortcomings in DNB’s mortgage underwriting, risk controls and treatment of customers. It assessed that the bank’s interest rate stress testing does not meet regulatory and statutory requirements and called for improvements to debt calculations, automated lending controls, complaints and arrears management. DNB must report its remediation status as of March 31, 2027.