Risk outlook Outlook for financial stability in Norway Summary

4.1 Risk concentrated on categories with high housing wealth or low income Credit risk and the risk of a shift in consumption are presented in terms of both the share of households in

Banks' total assets, as a share of GDP, are not particularly high in Norway compared with other countries, even though banks are the main lenders to Norwegian households and

The risk of instability in the Norwegian banking system has decreased somewhat since the May Financial Stability report (see Chart 1.1). Risk premiums in money and bond markets

monetary policy in the growth period from 2003 to 2008 would, for example, have resulted in higher capital inflows, a noticeably stronger krone and a decline in manufacturing, even

average for this period. A rising curve indicates weaker competitiveness. Sources: Statistics Norway, Technical Reporting Committee on Income Settlements, Ministry of Finance and

In addi- tion, it provides specific recommendations on the mone- tary policy strategy in the light of the financial stability outlook, where projections of macroeconomic variables

The pension reform, high labour immigration, tighter credit standard and uncertainty surrounding economic developments have probably induced households to increase saving (see box

If house values fall by 30 percent, the percentage of households with consumption expenditure in excess of income and available buffer that can finance their current