Foreign bank branches show more volatile lending – Norges Bank commentary

Branches of foreign banks in Norway appear to show faster lending growth but also greater volatility in lending, according to a “commentary” published on March 9 by Norges Bank.

Lars-Tore Turtveit, a senior adviser at Norges Bank, writes that the banking system is “dominated” by Norwegian-owned banks, which may be subject to higher capital requirements. This appears to keep their lending growth at lower, but more stable, levels.

Foreign banks must carry capital according to the rules in their