Kredittilsynet and Norges Bank support the main principles regarding more risk-based capital requirements
Joint response to the EU Commission from Kredittilsynet and Norges Bank:
The EU Commission presented in July 2003 its third proposal for new capital adequacy requirements for credit institutions and investment firms. The Commission's work on revising the current capital adequacy rules occurs at the same time as the corresponding work in the Basel Committee for Banking Supervision. "The New Basel Accord" will replace the current Basel Accord (from 1988) which is a harmonised international standard for capital adequacy in banks. Kredittilsynet and Norges Bank have previously this year delivered a joint response to the Basel Committee's third consultative proposal. The new EU rules will take effect at the end of 2006.
In a joint response to the EU Commission Kredittilsynet and Norges Bank support the main principles regarding more risk-based capital requirements. However, the response states that consequences to the banks' level of core capital might be high, and the EU Commission should consider this in its further work with the new rules. Estimates show that the core capital requirements for Norwegian Banks will be significantly reduced following the proposal from the EU Commission.
Contactpersons in Kredittilsynet:
Credit institutions:
Deputy Director General Sven-Henning Kjelsrud, tel. (+47) 22 93 99 36
Investment firms:
Deputy Director General Eirik Bunæs, tel. (+47) 22 93 98 20
Contact person in Norges Bank:
Director Arild J. Lund, tel. (+47) 22 31 61 44
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