The Norwegian Financial Supervisory Authority has issued a thematic supervisory report on Sparebanken Norge (formerly Sparebanken Vest) assessing the bank’s system for identifying and grouping connected counterparties for large exposure purposes. The supervisor concludes that the bank has a well-structured framework and conservative limits, but expects stronger documentation to make grouping assessments traceable and to support consistent application of the criteria. The review covered the bank’s policies, decision-making and controls for grouping connected clients as defined in the Capital Requirements Regulation (CRR) Article 4(39), and the supporting process for large exposure reporting. Finanstilsynet notes that the bank’s internal large exposure limits sit well below the CRR’s 25% cap of Tier 1 capital, and that these limits are assessed and documented through the Internal Capital Adequacy Assessment Process (ICAAP). It recommends introducing a checklist and supplementing the detailed internal guidelines with practical examples referenced by the European Banking Authority, particularly in light of Commission Implementing Regulation (EU) 2024/1728, which provides binding standards in Norway and clarifies that control and economic interdependence are independent triggers alongside a precautionary approach in case of doubt. A targeted review of third quarter 2024 reporting identified deviations between the bank’s grouping and information in the shareholder register, prompting data and control enhancements, but Finanstilsynet found that case-level grouping judgements were often not documented in a way that allows full verification and expects a strengthened, contemporaneous written rationale. Finanstilsynet records that the board has considered the findings and that necessary improvement measures have been initiated, and asks the bank to provide a copy of the report to its auditor.

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