Financial Crime World

Title: The Norwegian Banking Industry: A Blend of Domestic and International Players, Regulated by the Financial Supervisory Authority of Norway

Introduction

Norway’s banking industry, distinguished by its rich history, is shaped by a combination of domestic and international players. Today, the industry consists of 111 banks, including commercial banks, savings banks, and subsidiaries/branches of foreign financial institutions (FIs).

Major Players in the Norwegian Banking Landscape

Commercial Banks

  • DNB Bank ASA
  • Nordea Bank ABP, Filial i Norge

Savings Banks

  • Eika Group
  • SpareBank 1 Group

The Role of Foreign Financial Institutions

Foreign banks, predominantly from the European Economic Area (EEA), hold a significant market presence in Norwegian industries such as shipping, oil, and offshore businesses.

The Five Largest Banks in Norway’s Financial Market

  1. DNB Bank ASA
  2. Nordea Bank ABP, Filial i Norge
  3. Danske Bank (Norge) AS
  4. Handelsbanken
  5. SpareBank 1 SR-Bank AS

Regulations and Supervision

Adherence to EU Legislation

Despite not being an EU member, Norway is subject to EU banking and financial services legislation due to the EEA Agreement.

Regulations

  • Capital Requirements Directive V (CRD V)
  • Capital Requirements Regulation II (CRR II)
  • Bank Recovery and Resolution Directive II (BRRD II)

The Primary Financial Regulator: The Financial Supervisory Authority of Norway (FSAN)

Institutions pay fees for FSAN’s services. Its mission is to promote financial stability and maintain a functional market.

Licensing Requirements

  • Banking license: Required to accept deposits and provide credit
  • Foreign EEA credit institutions: Can provide services under their home state license (passporting) and take deposits in Norway
  • Non-banking credit institutions: Can provide loans through separate licenses as a non-banking credit institution or a finance company

Anti-Money Laundering Regulations

  • Anti-Money Laundering Act 2018
  • Norwegian Anti-Money Laundering Regulation 2018

Personal Data Handling Regulations

  • General Data Protection Regulation (GDPR)

Governance

  • Financial Supervision Act 1956

Conclusion

The Norwegian banking industry, composed of domestic and international players, is regulated by FSAN and subject to a complex set of national and international laws, aimed at ensuring stability, financial fairness, and consumer protection.