• Norway has a well functioning financial system. There are no short-term problems. Beyond the short term, rising household debt levels are the most important risk factor and will need to be watched closely.
• Life insurance companies and pension funds are susceptible to market risks even though they have rebuilt their balance sheets over the past two years. In the longer term, a low interest rate level and guaranteed return products will pose challenges.
• The payment system satisfies international norms. Measures are recommended to reduce liquidity pressures in the securities settlement system and the retail payments system.
• Crisis management arrangements are well developed, but more work is needed regionally in relation to cross-border conglomerates, and locally in respect of the largest individual bank.
• In time, reviews of deposit insurance arrangements, and state ownership in the largest bank, would be desirable.
• Overall, supervision of the financial system in Norway is active, effective and in line with international norms.

The report is published on the IMF website (PDF, 692 kB).