Headlines 2013

Norwegian Politicians about Financial Stability

2013-10-07


Morten Søberg, resigning State Secretary in the Norwegian Ministry of Finance on Monday gave a lecture at IFN on "the new Norwegian banking regulations as a tool for financial stability" . Moreover, Ola Borten Moe, the resigning Minister for Oil & Energy, also attended the seminar. Søberg explained that in regards to financial stability there is only one issue separating the outgoing and incoming governments - judging by election promises – namely, how much capital that home buyers need to deposit. So far 15 percent has to be paid up-front , while the incoming government wants to reduce this to the Swedish level, that is 10 percent.

 

In front Oil & Energy Minister Ola Borten Moe. Standing is Morten Søberg, outgoing Secretary of State.

 

 

 

"Financial stability has become increasingly important over the years, " said Morten Søberg and depicted the Norwegian banking sector that that differs from the Swedish . First and foremost, the number of banks are many more and the regional ties stronger. Morten Søberg described the new capital requirements for banks in Norway that are effective from July 1 this year. The big change, as in the banking world in general, is growing demand for equity. "The smaller the bank is the more conservative and solid it is" said Søberg .

Norway's oil dependency was discussed. This was said, by the two Norwegian politicians, to be both good and bad. The Norwegian households' debt burden is greater than ever adding a degree of uncertainty. In addition the average wage in Norway is 30 percent higher than in Sweden. "A political challenge for us in the future is how we can continue to foster a climate favorable to innovation and thus generate progress. Not to fall into quicksand of security" said Ola Borten Moe who, together with Morten Søberg was on his last official visit abroad. Next week a new Norwegian government will be presented and parliament opens on Tuesday.

IMG_0748 berabetad för hemsidan

 

Morten Søbergs presentation
 

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