Norges Bank Financial Stability Report No.2, 2006

The central bank of Norway, Norges Bank, published its twice yearly Financial Stability Report for 2/2006 on 5 December. Overall, the outlook for financial stability is considered to be satisfactory, according to the report.

Households' financial position is strong. At the same time, household debt is growing rapidly and the ratio of debt to income has never been higher. The sustained rapid rise in debt accumulation and property prices may be a source of future instability in the economy, higher

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