The Norwegian Financial Supervisory Authority has published an onsite inspection report on DNB Bank ASA’s DNB Finance division within Large Corporates & International, assessing credit risk management and controls for asset financing such as vehicles. The supervisor concludes that several policies and routine descriptions should be clarified, identifies shortcomings in debt-servicing capacity calculations under the lending regulation for some customers, and will seek additional information on the division’s commission model for loans intermediated through car dealers in a separate case. The report highlights needed improvements in how income and expenses are assessed and documented, including clearer guidance on income stability, verification of documentation used in affordability calculations, and consistent treatment of customer information that deviates from model assumptions. It also flags issues around use of co-borrowers, documentation of lending decisions, and the governance and usability of internal guidance on applying the flexibility quota for loans that do not meet affordability and leverage requirements. Findings also cover follow-up of customers in default and complaint handling, including the absence of routines for systematic complaints analysis, gaps in acknowledgement and registration practices for complaints submitted outside the digital portal, and weaknesses in adherence to existing complaints procedures. Finanstilsynet will follow up the car-dealer loan intermediation commission model in a standalone supervisory case. DNB’s board response referenced in the report includes planned and ongoing updates to routines, technical solutions and training, including further work on complaint-handling processes during the first half of 2025.
Norwegian Finanstilsynet 2025-05-09
Norwegian Financial Supervisory Authority finds gaps in DNB Finance’s lending-regulation compliance and complaints handling and will review car-dealer commission model
The Norwegian Financial Supervisory Authority's inspection of DNB Bank ASA's DNB Finance division found deficiencies in credit risk management, especially in debt-servicing capacity calculations and documentation. The report calls for clearer policies on income assessment, co-borrower use, and complaint handling, with a separate review of the car-dealer loan commission model. DNB's board plans updates to routines and training, focusing on complaint processes in 2025.