The Norwegian regulator has updated its rules mandating banks' liquidity coverage ratios (LCR), in accordance with EU law. In a statement on Wednesday, the European Commission said it was "concerned" about Norway's decision to increase LCR requirements for banks from €100 million ($125 million) to €200 million.
The Norwegian regulator has updated its rules mandating banks' liquidity coverage ratios (LCR), in accordance with EU law. With the new requirements, the nation's three largest banks, DNB, Nordea, and Kommunalbanken, must hold a liquidity reserve of 100% at all times, so that holding of liquid assets must correspond to net liquidity outflow in a given stress period of 30 days; these banks must be compliant from the end of 2015.