Norwegian banking groups fund NOK assets by borrowing in foreign currency. Banking groups use currency swap markets to convert foreign exchange to NOK and manage their liquidity in various currencies over time. This strategy makes the currency swap market a key component of the financial system. In this article, I will examine how banking groups convert foreign exchange to NOK, the risks associated with the various strategies and the vulnerabilities in the financial system that might arise from the use of currency swaps. In conclusion, I discuss why banking groups have behaved in this manner and what may be done to possibly modify these strategies or reduce attendant vulnerabilities.