Change in the Organisation of the Supply of Notes and Coins – Establishment of the Limited Company Norsk Kontantservice AS (NOKAS)

Abstract

During the past two years, major changes have been made in the organisation of the supply of notes and coins in Norway. The changes are a result of developments in the distribution network since the late 1980s, which have included modifications in the transport system and new delivery procedures. As a result, Norges Bank was increasingly performing commercial services for banks in connection with activities relating to Norges Bank’s responsibility for issuing notes and coins. At the same time, the activities of the Bank’s regional branches increasingly concentrated on the distribution and processing of notes and coins. In due course, it proved necessary to distinguish more clearly between central bank tasks ensuing from Norges Bank’s statutory responsibility for issuing notes and coins, and operations of a more commercial nature. As a result, a separate company was established in the summer of 2001 – Norsk Kontantservice AS (NOKAS), with Norges Bank and private banks as owners. This company performs both central bank tasks for Norges Bank and other cash processing services for private banks. This article provides a more detailed description of the changes and the reasons for these changes.