The Norwegian Financial Supervisory Authority (Finanstilsynet) published the programme, presentations and recording from its professional seminar covering its Financial Outlook assessment of risks and vulnerabilities in Norway’s financial system, the effects of implementing the Capital Requirements Regulation III (CRR3) for standardised approach banks, observations from thematic inspections of consumer asset finance, and its work to simplify and apply proportionality in supervision. The Financial Outlook presentation highlighted continued uncertainty from geopolitical tensions and higher trade barriers, elevated asset valuations and the risk of sharp market corrections, and domestic vulnerabilities from high household debt and high property prices, while noting that Norwegian banks are profitable and well capitalised. On CRR3 (in force from April 2025), Finanstilsynet described reduced risk weights for mortgage exposures (average risk weight falling from 40% to 30%), loan-to-value sensitivity for income-producing commercial real estate exposures (average risk weight around 85%), and an average increase of 2.5 percentage points in the Common Equity Tier 1 (CET1) ratio driven by a 12% reduction in risk-weighted assets, with differing impacts across banks. It also set out European Banking Authority guidelines for acquisition, development and construction exposures, where a 150% risk weight can be reduced to 100% if specified pre-sale or pre-lease or equity-at-risk criteria are met, and indicated Norwegian market practice can continue with a minimum 50% pre-sales and a cash deposit of at least 10%. For property valuation under CRR3 (Article 229), the materials emphasised conservative valuation and limits on upward revaluations for existing loans versus origination values or historical averages (six years for residential property and eight years for commercial property), with exceptions for documented upgrades, and noted that meeting these requirements is necessary for property collateral to be recognised in risk-weighting. In its thematic review of asset finance, Finanstilsynet referenced the loan regulation extension from 1 July 2023 to car and boat loans, inspections of Santander Consumer Bank AS, DNB Bank ASA and Nordea Finans Norge AS, and two findings subject to special follow-up including a system error affecting affordability stress testing and issues linked to loan distribution via car dealers and agents’ remuneration. Finanstilsynet plans to provide further CRR3 valuation guidance via updates to Circular 5/2021, with publication targeted for early 2026. On simplification, it summarised a 2025 internal workstream that gathered around 300 proposals across 25 themes and pointed to forthcoming decisions on implementing selected measures in Q4 2025 and Q1 2026, including work on fit and proper assessment scope and guidance, streamlining capital applications, and reducing national reporting that duplicates CRR and Solvency II reporting.

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