Amendments to the guidelines for collateral for loans in Norges Bank
Amendments to the guidelines for collateral for loans in Norges Bank were today adopted by Norges Bank’s Executive Board. The changes will take place gradually as from 1 June 2010. The purpose of the guidelines is to ensure that banks have adequate borrowing facilities while limiting Norges Bank’s exposure to risk.
- One important change in the guidelines is that securities issued by banks will no longer be eligible as collateral for loans in Norges Bank as from February 2012. Covered bonds will continue to be eligible, says Norges Bank Executive Director Kristin Gulbrandsen.
The adopted amendments to the guidelines are those contained in the proposal dated 22 October 2009 circulated for comment to the Norwegian Financial Services Association, the Norwegian Savings Banks’ Association and Kredittilsynet (Financial Supervisory Authority of Norway).
Circulation for comment regarding amendments to the Guidelines for pledging securities as collateral for loans from Norges Bank, Norges Bank’s letter to Kredittilsynet (Financial Supervisory Authority of Norway), 22 October 2009. The letter was also sent to the Norwegian Financial Services Association, the Norwegian Savings Banks Association.
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