The Financial Supervisory Authority of Norway published its third-quarter assessment supporting an unchanged countercyclical capital buffer for banks’ Norwegian exposures. Norges Bank subsequently kept the requirement at 2.5%, consistent with the authority’s assessment that elevated financial-system vulnerabilities continue to warrant the current level. Key vulnerabilities remain high household debt and elevated residential and commercial property prices. Household debt burdens remain high despite declining since 2022, while higher interest rates have reduced commercial property values and earnings. Norwegian banks remain profitable and meet regulatory capital requirements, although aggregate return on equity fell to 12.3% in the first quarter of 2026 from 14% a year earlier, and stress testing indicates that capital adequacy could weaken substantially in a severe downturn.
Norwegian Finanstilsynet2026-08-13
Financial Supervisory Authority of Norway finds no basis to change the 2.5% countercyclical capital buffer
The Financial Supervisory Authority of Norway found no basis to change the countercyclical capital buffer, and Norges Bank kept the requirement at 2.5%. High household debt and property valuations remain key vulnerabilities, while banks continue to meet capital requirements despite lower profitability.