Present:

The Executive Board:

Øystein Olsen, Jon Nicolaisen, Egil Matsen, Hilde Myrberg, Kjetil Storesletten, Karen Helene Ulltveit-Moe, Kathryn M. Baker and Steinar Juel

Alternates:

Arne Hyttnes

Employee representatives:

Mona H. Sørensen and Nina L. Midthjell (item 231)

Apologies:

Kristine Landmark

Management:

Torbjørn Hægeland (225-226), Sindre Weme (225-226), Henrik Borchgrevink (225-226), Katrine Godding Boye (225-226), Ida Wolden Bache (225-226), Per Espen Lilleås (225-226), Ingrid Solberg (225-226), Olav Bø (225-226), Arne Kloster (225-226), Trond Grande (228-230), Marius Nygaard Haug (228), Ivar Eriksen (228), Dag Huse (229), Ole Christian Bech-Moen (229), Lise Lindbäck (229), Merethe Riddervold (228-229), Mads Kristensen (229), Pål Haugerud (228-229), Runar Malkenes (225-226, 228-229), Ingunn Valvatne (225-229), Bjarne Gulbrandsen (225-232), Sigrid Igland (225-229, 231-232)

There were no comments on the meeting notice and agenda.

Item 225/2017 Advice on the countercyclical capital buffer 2017 Q4 – provisional assessments

Discussion document:

• HIGHLY CONFIDENTIAL memo from Financial Stability of 1 December 2017

Torbjørn Hægeland and the Governor outlined the basis for the recommendation to the Ministry of Finance on the countercyclical capital buffer. The decision basis will be published in Monetary Policy Report 4/17.

The Executive Board discussed the level of the countercyclical capital buffer for banks. In light of the Executive Board's discussions, a draft letter to the Ministry of Finance with a recommendation on the countercyclical capital buffer for the fourth quarter of 2017 is to be presented for final consideration at the Executive Board's meeting of 13 December.

Item 226/2017 Monetary Policy Report with financial stability assessment 4/17 – Monetary policy analysis and provisional assessments.

Discussion document:

• HIGHLY CONFIDENTIAL memo from Monetary Policy of 1 December 2017

Ida Wolden Bache and the Governor presented the main elements of the draft monetary policy report, including the analyses and assessments of the economic situation and the outlook for monetary policy. They also referred to presentations and discussions at the seminar on the monetary policy situation.

The Executive Board discussed the economic outlook and the monetary policy stance. In light of the Executive Board's discussions and new information, a draft "Executive Board's Assessment" is to be presented for final consideration at the Executive Board's meeting of 13 December.

Item 227/2017 Briefing on current issues in Central Banking Operations

The Governor gave a briefing on current issues in Central Banking Operations.

Item 228/2017 Letter to the Ministry of Finance on tax risks and costs related to the reorganisation of the Government Pension Fund Global

Discussion document:

• Memo from NBIM of 29 November 2017

In its letter of 4 October 2017, the Ministry of Finance has asked Norges Bank for an overall account and assessment of the potential tax risks and costs related to management of the GPFG by a new separate organisation outside Norges Bank.

Trond Grande and Ivar Eriksen presented the draft letter to the Ministry of Finance.

The Executive Board had an exchange of views and approved the submission of a letter to the Ministry of Finance based on the draft letter and the Executive Board's remarks. The Governor was authorised to finalise the letter.

Item 229/2017 Government Pension Fund Global – Investments in unlisted companies

Discussion documents:

• Memo from NBIM of 30 November 2017
• Memo from the Risk and Investment Committee of 5 December 2017

In its letter of 29 June 2017 and as a part of the assessment of whether to allow the GPFG to be invested in unlisted equities, the Ministry of Finance has asked that Norges Bank provide advice and assessments.

Trond Grande and Ole Christian Bech-Moen presented a draft letter to the Ministry of Finance.

Egil Matsen reported on the Risk and Investment Committee's discussion and the topics that particularly drew the Committee's attention. Matsen then presented the Committee's position on the matter.

The Executive Board had an exchange of views. Management took note of the input and remarks from the Executive Board's discussion for further work on the draft letter. The Executive Board asked that the matter and the draft letter be presented for final consideration at an upcoming meeting.

Item 230/2017 Briefing on current issues in investment management

Trond Grande gave a briefing on current issues in investment management.

Item 231/2017 Minutes of the Executive Board meeting of 22 November 2017

Discussion document:

• Draft minutes

The Executive Board approved the minutes of its meeting of 22 November 2017.

Item 232/2017 Any other business

The Executive Board had an exchange of views on issues regarding investment management and the media.

Documents distributed for information together with the discussion documents:

• National Report from the Regional Network 4/2017, Memo from Monetary Policy of 30 November 2017
• Market Focus 5-2017, Report from Markets and ICT of 1 December
• NBREM – Report from the Real Estate Investment Board meeting of 8 November 2017