Turbulence hits Norwegian banks

Norwegian banks face tougher conditions as a result of the considerable turbulence in global money and credit markets, the country's central bank noted in its latest Financial Stability Review.

The outlook for the country's financial system was still satisfactory but the central bank highlighted four conditions that warranted further monitoring:

· banks' liquidity management;

· the threat of a global downturn;

· the rise in household debt; and

· the scale of banks' exposures to the property

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