The risk premium in three-month Nibor has increased in the past couple of years, from around 25 basis points towards the end of 2014 to approximately 60 basis points in summer 2016. The increase in the premium (the difference between Nibor and the expected key policy rate) probably reflects a number of factors, including increased supply of liquidity in the euro area, banks’ adjustment to new liquidity standards introduced under Basel III (LCR requirements) and the US money market reform. Understanding how these factors affect the Norwegian money market rate Nibor requires a closer look at how Nibor is constructed.