The Financial Supervisory Authority of Norway has published a supervisory report from a thematic inspection of Sparebank 68 Grader Nord’s policies and practices for identifying and grouping connected counterparties for large-exposure purposes under the Capital Requirements Regulation. The supervisor assessed the bank’s framework as broadly sound, but found a gap between written guidelines and day-to-day application, with a need to strengthen documentation and quality assurance to support correct regulatory reporting and compliance. The review found that, in five assessed credit cases, grouping was applied but the underlying assessments were not sufficiently documented, including a lack of clear evidence of which criteria were used and non-systematic use of the bank’s checklist. The inspection also identified inconsistencies between credit-note assessments and the bank’s quarterly exposure reporting (Altinn form KRT-1115), where the reviewed groups were reported as standalone counterparties in third and fourth quarter 2024 reporting. Expectations include updating internal guidelines to reference Commission Regulation (EU) 2024/1728, clarifying methodology and documentation requirements, ensuring that assessments are reflected correctly in exposure reporting, and considering consolidation of related internal documents to improve operational anchoring. The supervisor noted that the bank’s board has considered the findings and that improvement measures are being or will be implemented, and requested that the report be shared with the bank’s auditor.
Norwegian Finanstilsynet 2025-12-12
Financial Supervisory Authority of Norway identifies documentation and reporting gaps in Sparebank 68 Grader Nord’s grouping of connected counterparties
Norway's Financial Supervisory Authority found gaps at Sparebank 68 Grader Nord in identifying connected counterparties for large exposures under the Capital Requirements Regulation. The report noted insufficient documentation in credit assessments and inconsistencies in exposure reporting. The bank must update guidelines, improve documentation, and align reporting practices, with the board considering improvement measures.