Here is the rewritten article in markdown format:

Private Banking Regulations in Norway

Norway’s financial sector is governed by a robust regulatory framework, designed to ensure the stability and integrity of its banking system. The country’s central bank, the Norges Bank, plays a crucial role in supervising and regulating banks, while the Financial Supervision Authority (Finanstilsynet) serves as the main regulator of Norway’s financial institutions.

Deposit Taking

To take deposits from the public, Norwegian financial institutions must hold a banking license. Non-banking credit institutions may receive repayable funds through issuing bonds or other debt securities. EEA credit institutions providing services in Norway under their home state license (passporting) are permitted to accept deposits in Norway, provided their home state license allows them to do so.

Lending

Lending is a regulated activity, requiring a license or passport. However, Norway has established rules permitting private individuals to engage in crowdlending if certain criteria are met. The country has not yet implemented the EU Crowdfunding Regulation.

Foreign Exchange

Spot foreign exchange trading can be conducted by banks, payment institutions, electronic money institutions, and finance companies, as well as foreign passported credit institutions, payment institutions, and electronic money institutions, all subject to holding an appropriate license. Dealings in foreign exchange derivatives are only permitted by institutions with an investment firm license.

Payment Services

The Payment Services Directive (PSD) was fully implemented into Norwegian law in 2010, with regulations implementing the public law parts and key private law parts of the second Payment Services Directive (PSD II) coming into force on April 1, 2019. PSD II was fully implemented into Norwegian law as part of the entry into force of a new Finance Agreements Act on January 1, 2023.

Investment Services

A license to provide investment services may be granted to banks and limited liability companies. Banks may obtain a license in their own name or through subsidiaries. Foreign passported firms may also provide investment services in Norway; see further below.

Legal Structure of Banks

Norwegian banks can be organized as either commercial banks or savings banks. Commercial banks must be established as public limited liability companies or private limited liability companies. Pursuant to the Financial Undertakings Act, banks established after January 1, 2016, must be organized as public limited liability companies; however, those established as subsidiaries in a financial group may be organized as private limited liability companies.

Savings banks were originally independent entities without external owners. Since 1987, savings banks have been entitled to bring in external equity by issuing equity instruments, namely equity certificates. These differ from shares in that they do not give holders ownership of a bank’s entire equity capital. Around 40 savings banks, including several of the largest ones, have issued these instruments.

Branches and Cross-Border Services

Foreign banks established within the EEA may establish branches in Norway in accordance with CRD V and MiFID II. The main regulator of a foreign branch is its home state regulator but branches of foreign banks are also subject to Norwegian rules to a certain extent, pursuant to, inter alia, the Financial Undertakings Act, and supervised by the FSAN, pursuant to, inter alia, the Regulation on Supervision of Financial Undertakings Established in Another EEA State 1993.

Foreign banks established within the EEA may also provide cross-border services in Norway under passporting rules securing the freedom to provide services. Foreign banks providing cross-border services in Norway are regulated and supervised by the FSAN to a lesser degree. Banks established outside of the EEA must hold a Norwegian license to provide banking services in Norway through a branch, including UK banks as a result of Brexit, and applies regardless of whether a UK bank had established a branch in Norway prior to Brexit. A license to provide cross-border services is not available for banks established outside of the EEA.

Note: The FSAN stands for Financial Supervision Authority (Finanstilsynet).