Markets for Norwegian Banks’ Long-Term Funding – Implications of Changes in Market Conditions and the Regulatory Framework

Abstract

Norwegian banks rely on market funding to a further extent than they did previously. Bond markets in Norway and abroad are important sources of bank funding. The composition of banks’ wholesale funding is affected by changes in market conditions and in the regulatory framework. Amendments to the rules on collateral for loans from Norges Bank and proposals for new international rules for banks’ liquidity coverage and net stable funding ratios are affecting Norwegian banks’ investment and funding structure.