Norges Bank maintains countercyclical capital buffer rate at 2.5%

The Monetary Policy and Financial Stability Committee has decided to maintain the countercyclical capital buffer rate at 2.5%, according to the Financial Stability Report 2023 H1. The buffer is intended to strengthen banks’ solvency and mitigate the risk of banks amplifying an economic downturn. Despite the uncertainty surrounding future economic developments, creditworthy firms and households appear to have ample access to credit, and Norwegian banks are well-positioned to deal with higher losses while maintaining lending.