Norwegian financial institutions are required to maintain a liquidity coverage ratio (LCR) in order to be able to cover net liquidity outflows during periods with limited access to market funding.
Pursuant to the capital adequacy framework (cf. Article 4 of the LCR Regulation) institutions may use the liquidity reserve to cover liquidity outflows during stress periods. In the current situation, Finanstilsynet will accept this. If an institution fails to meet the LCR requirement, it must immediately notify Finanstilsynet, cf. Article 414 of the Capital Requirements Regulation. This also applies to the liquidity coverage requirement in significant currencies.