The Financial Supervisory Authority of Norway (Finanstilsynet) published its quarterly review of how selected Norwegian and foreign financial institutions used the lending regulation’s flexibility quotas in the first quarter of 2025. The share of new housing-secured loans that deviated from the regulation’s requirements fell compared with the fourth quarter of 2024, particularly for mortgages secured outside Oslo, while the share of new consumer loans deviating from the requirements rose and deviations for loans secured by collateral other than housing were unchanged. The decline in mortgage deviations was most pronounced for breaches of the maximum loan-to-value requirement. The report covers lending subject to the lending regulation (utlånsforskriften), under which firms may grant a limited number of loans that exceed one or more regulatory requirements within a flexibility quota and must report quarterly to the board (or management for foreign institutions) on quota usage. The first quarter of 2025 is the first reporting period after Ministry of Finance changes that took effect from 31 December 2024, including raising the maximum loan-to-value limit from 85% to 90%.
Norwegian Finanstilsynet 2025-05-19
Norway's Financial Supervisory Authority reports fewer mortgage lending rule deviations in Q1 2025 while consumer-loan deviations increase
The Financial Supervisory Authority of Norway (Finanstilsynet) reported a decrease in deviations from lending regulation requirements for housing-secured loans in Q1 2025, particularly outside Oslo, while deviations for consumer loans increased. The decline in mortgage deviations was mainly due to adherence to the maximum loan-to-value requirement. This period marks the first reporting after the Ministry of Finance raised the maximum loan-to-value limit from 85% to 90% on 31 December 2024.