The Norwegian Financial Supervisory Authority's (FSA) consultation note on the implementation of the capital requirements regulations (CRR3) indicates a positive effect for Norway's small to medium-sized savings banks, according to a report published by Nordic Credit Rating (NCR) today.
"The implementation of CRR3 is positive for small to medium-sized savings banks," said NCR credit analyst Geir Kristiansen. "This additional capital flexibility will enhance these banks' competitiveness towards larger banks and increase buffers to regulatory minimums."
The changes associated with CRR3 represent a significant improvement in the risk-sensitivity of capital requirements for banks using the standardised capital approach. The largest capital benefit will be associated with residential mortgage loans with very low loan-to-value ratios.
Contacts:
Geir Kristiansen, analyst, +4790784593, geir.kristiansen@nordiccreditrating.com
Christian Yssen, analyst, +4740019900, christian.yssen@nordiccreditrating.com
Ylva Forsberg, analyst, +46768806742, ylva.forsberg@nordiccreditrating.com