Norway's Norges Bank has issued new guidelines on the securities and fund units that can be pledged as collateral for loans from the central bank and on how borrowing capacity is calculated. Effective 29 April 2026, the framework replaces the collateral guidelines previously set out in circular 4/2024 and sets detailed eligibility, concentration and valuation rules for collateral. Eligible collateral must meet requirements on registration venue, currency, issuer jurisdiction, credit rating, listing and minimum outstanding volume. Permitted denominations are NOK, SEK, DKK, EUR, USD, GBP, JPY, AUD, NZD, CAD and CHF. Private issuer securities in NOK must have at least NOK 300 million outstanding and those in foreign currency at least the equivalent of EUR 100 million, while most pledged securities are capped at 20% of an issue's outstanding amount and covered bonds at 70% of a borrower's adjusted collateral value. Bond and money market fund units may also qualify if they are managed by Norway-registered firms, registered in VPS and limited by their rules to eligible investments. Securities issued by banks or financial institutions are generally excluded, apart from covered bonds and asset backed securities (ABS). ABS are limited to the senior tranche, must be rated AAA and carry a 15% haircut. Borrowing capacity will be determined through four haircut categories, ranging from 1% to 30% depending on asset type, credit quality, maturity and whether the coupon is fixed or floating, with additional foreign currency haircuts of 6 to 8 percentage points and a further 5 percentage point add-on for affiliated covered bonds.
Norges Bank 2026-04-29
Norway's Norges Bank issues new loan collateral guidelines with four haircut categories from 29 April 2026
Norges Bank has issued new guidelines on eligible collateral and borrowing capacity for central bank loans, replacing circular 4/2024. The rules set eligibility, concentration and valuation criteria for securities and fund units, including currency and minimum issue size thresholds, caps on pledged amounts, and exclusions for most bank and financial institution securities. Borrowing capacity is determined via four haircut categories from 1% to 30%, with additional haircuts for foreign currency exposures, asset backed securities and affiliated covered bonds.