Norges Bank

Staff Memo

Record Increase in Payment Remarks: A Red Flag for Norwegian Firms?

Author:
Ida Nervik Hjelseth and Karolis Liaudinskas
Series:
Staff Memo
Number:
9/2024

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.

Staff Memos present reports and documentation written by staff members and affiliates of Norges Bank, the central bank of Norway. Views and conclusions expressed in Staff Memos should not be taken to represent the views of Norges Bank.

ISSN 1504-2596 (online)

Published 27 November 2024 09:30
Published 27 November 2024 09:30