Norges Bank Financial Stability Report No.2, 2005

The central bank of Norway, Norges Bank, has published its twice yearly Financial Stability Report 2/2005. "The short-term outlook for financial stability is regarded as satisfactory and somewhat better than half a year ago," said Governor Svein Gjedrem.

The sharp rise in house prices and household debt, however, entail a risk of less stable economic developments in the longer term.

Banks achieved solid results in the first three quarters of 2005, primarily as a result of very low loan losses and

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