Kredittilsynet recommends go-ahead for the Ministry of Trade and Industry (NHD) to take over the Government Bank Investment Fund’s stake in DnB NOR ASA

Kredittilsynet 23 February 2004 wrote to the Ministry of Finance recommending that the Ministry of Trade and Industry (NHD) be authorised to take over the Government Bank Investment Fund’s stake in DnB NOR ASA. To go ahead, the share transfer needs to be approved under the provisions of the Financial Institutions Act that regulate holdings in financial institutions. Kredittilsynet’s position is that the NHD’s acquisition of up to 34 percent of DnB NOR ASA’s share capital is a matter that should be referred to the Ministry of Finance for decision.

In Kredittilsynet's view, the considerations underlying the rules on approval of holdings will be safeguarded with the NHD as the owner of this holding. In its response to the NHD’s application, dated 11 February 2004, Kredittilsynet stressed that the holding would be managed by the Department of Ownership at the NHD. The fact that this department is not responsible for tasks related to general industry policy, rule framing, supervision etc., helps to ensure the separation of its ownership role from other governmental roles, and will continue to do so after the shares are transferred to the department from the Government Bank Investment Fund. Kredittilsynet also pointed to the special guidelines drawn up for the management of the state’s owner-interests in financial institutions operating under the NHD. These guidelines affirm that the state cannot have representatives on the board of directors or supervisory board of financial institutions, and that the state, through its participation in the election committee, will ensure that the governing bodies acquire a composition that represents all shareholders and not particular shareholder interests. The guidelines also highlight the important principle that the board of directors and the management of a financial institution are responsible for the institution's business, and that the state, as owner, must not conduct itself in a manner likely to raise doubt about its independence in relation to customer treatment, for instance when it comes to lending decisions and default monitoring.

Contact persons:
Director General Bjørn Skogstad Aamo, tel. (+47) 22 93 99 29
Special Adviser Kjersti Elvestad, tel. (+47) 22 93 99 18

Attachment:
Kredittilsynet's recommendation to The Ministry of Finance, dated 23 February 2004 (pdf) Norwegian version only