• The commercial real estate market - no longer a “black box” 

      Bjørland, Christian; Hjelseth, Ida Nervik; Mulelid, John Henrik; Solheim, Haakon; Vatne, Bjørn Helge (Staff Memo;6/2022, Working paper, 2022)
      Norwegian banks’ exposure to commercial real estate (CRE) is substantial. Historically, banks in Norway and in other countries have incurred considerable losses on loans to this sector during financial crises. Publicly ...
    • How much CET1 capital must banks set aside for commercial real estate exposures? 

      Andersen, Henrik (Staff Memo;10/2019, Working paper, 2019)
      The Ministry of Finance has proposed a temporary capital requirement (risk weight floor) for commercial real estate (CRE) exposures in Norway, applicable to the largest banks. CRE is the sector where banks have historically ...
    • What drives office rents? 

      Bjørland, Christian; Hagen, Marius (Staff Memo;12/2019, Working paper, 2019)
      Banks have substantial exposures to commercial real estate (CRE). Rental prices are important for CRE companies’ debt-service capacity, which in turn affects the risk of future bank losses. In this paper, we estimate error ...