Norges Banks vitenarkiv
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Årstalen 2025
No full textTale av sentralbanksjef Ida Wolden Bache til Norges Banks representantskap og inviterte gjester, Oslo 13. februar 2025.publishedVersio
Policy rate will likely be reduced in March
Full text linkIntroductory statement by Governor Ida Wolden Bache at the press conference following the announcement of the policy rate on 23 January 2025.publishedVersio
Monetary policy report 1/2025
Full text linkThe monetary policy strategy describes the Committee’s interpretation of the mandate for monetary policy and provides a framework for the Committee’s assessments of the appropriate monetary policy reaction to different shocks. A summary of the strategy is provided here and published in full on Norges Bank’s web pages. Norges Bank’s Monetary Policy and Financial Stability Committee decided to keep the policy rate unchanged at 4.5 percent at its meeting on 26 March. There is uncertainty about future economic developments, but the Committee’s current assessment of the outlook implies that the policy rate will most likely be reduced in the course of 2025.publishedVersio
Norges Banks oppgjørssystem : Årsrapport 2024
No full textFormålet med Norges Banks oppgjørssystem (NBO) er å gjennomføre sikre og effektive oppgjør av betalinger mellom banker som har konto i Norges Bank. Årsrapporten omhandler hovedaktiviteter og tiltak for å ivareta formålet.publishedVersio
Norges Bank's settlement system : Annual report 2024
Full text linkThe purpose of Norges Bank's settlement system (NBO) is to settle payments securely and efficiently between banks and other financial sector undertakings with an account at Norges Bank. The Norges Bank’s Settlement System Annual Report discusses main activities and measures related to the operation and development of NBO.publishedVersio
Buy now pay (less) later : leveraging private BNPL data in consumer banking
Full text linkBuy Now, Pay Later loans (BNPL) are an increasingly popular way to finance small-ticket purchases. We provide new evidence on how BNPL influences regular bank credit markets, benefiting both lenders and borrowers through information production and learning. Using data from over one million unsecured bank loan applications from a bank that also provides BNPL services, we exploit the fact that BNPL enhances the bank’s ability to assess creditworthiness by incorporating transaction data beyond shared credit registers. We establish four key findings. First, BNPL users are more likely to be approved for bank loans due to lower internally assessed credit risk, while those with late BNPL payments face lower approval rates. Second, BNPL customers benefit from discounted interest rates, while the bank earns a profit margin by price discriminating among customers with a good internal payment history but differing ex-ternal credit scores. Third, customers with a BNPL history exhibit better repayment behavior and lower default rates, partly driven by improved loan terms. Fourth, learn-ing e!ects from prior BNPL use likely reinforce this behavior. Our findings suggest that BNPL improves risk assessment and fosters learning, enhancing credit outcomes and access for higher-risk borrowers, thereby promoting financial inclusion.publishedVersio
Relationship lending and monetary policy pass-through
Full text linkThis paper investigates the link between bank-firm lending relationships and monetary policy pass-through, focusing on episodes of low interest rates. Using administrative tax and bank supervisory data ranging from 1997 to 2019, we track the entirety of bank-firm relationships in Norway. Our analysis shows that when the central bank’s policy rate is relatively low, firms that have maintained a long-term relationship with their bank experience a lower pass-through of further policy rate cuts. Specifically, we find that when the policy rate is 1.09%, each additional year of relationship decreases the pass-through of a rate cut by 2.7 percentage points. We propose a theoretical model to rationalize Our empirical findings, where state-dependent differential pass-through results from the presence of firms’ switching costs and banks’ leverage constraint. The model highlights that the composition of relationship lengths in the economy matters for aggregate monetary policy pass-through. The proportion of long-term relationships in the Norwegian economy significantly increased after the global Financial crisis. Using the model, we calculate a counterfactual aggregate pass-through for 2017, a period of monetary easing in a low-rate environment, assuming this proportion had remained at its pre-crisis level. Our findings indicate a substantial increase in aggregate pass-through, on the order of 20%.publishedVersio
Report from Norges Bank Watch 2025
Full text linkRemarks by Pål Longva, Deputy Governor of Norges Bank, 27 February 2025.publishedVersio
