Record increase in payment remarks: A red flag for Norwegian firms?

Abstract

This staff memo documents a detailed analysis of the payment remark database to better understand whether the recent increase in payment remarks signals an impending wave of bankruptcies. We find that the number of high-bankruptcy-risk firms is growing in proportion to the total number of firms with remarks. This suggests that the recent increase in payment remarks is likely to predict a proportional rise in bankruptcies and should therefore be closely monitored.