The Financial Supervisory Authority of Norway (Finanstilsynet) has published a report on consumers’ position in the retail deposit market, mapping banks’ deposit products and pricing and assessing whether the current framework adequately protects consumers. The review finds that deposit rates generally adjust following changes in the policy rate, but banks’ deposit interest margins have increased as the policy rate has risen, and concludes that consumers’ interests are not sufficiently safeguarded due to both regulatory weaknesses and banks’ non-compliance. The analysis covers ten banks representing more than half of Norwegian households’ deposits (around NOK 1,800bn in total household deposits at end-September 2025) and shows wide variation in rates across account types, with persistently lower rates on certain accounts such as tenancy deposit accounts and guardianship accounts. It also notes practices that can weaken pass-through to existing customers, including delayed implementation of deposit rate increases and temporary higher rates for new customers, while comparisons can be complicated by customer dividend schemes and product bundles. On conduct and governance, Finanstilsynet identifies gaps in banks’ application of the European Banking Authority’s product oversight and governance guidelines for retail banking products, including weak target-market definition and limited lifecycle monitoring focused mainly on profitability rather than customer interests, and observes that proactive advice during the customer relationship is generally not an explicit requirement and is unevenly provided. Finanstilsynet sets out measures for further examination, including introducing a statutory duty for ongoing customer follow-up/advice and legislating a “reciprocity principle” for interest rate adjustments, and plans further follow-up through information measures and supervision. The report also notes that recent Financial Complaints Board decisions questioning banks’ interest-change clauses are expected to be tested in court, so the legal position is not yet finally settled.
Norwegian Finanstilsynet 2026-02-27
Financial Supervisory Authority of Norway finds consumer interests insufficiently protected in retail deposits and outlines possible reforms
The Financial Supervisory Authority of Norway (Finanstilsynet) reports that banks' deposit interest margins have risen with policy rate hikes, inadequately protecting consumers due to regulatory gaps. Analyzing ten banks, it finds significant rate variations hindering rate pass-through. Finanstilsynet suggests statutory customer advice and a "reciprocity principle" for rate adjustments, with further follow-up planned.