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Investing in real estate : the 10-year history
No full textThe fund was given a mandate to invest in real estate in April 2010. This publication on the 10th anniversary sums up a decade of real estate investing, and provides an overview of our investments.publishedVersio
Aksjonærforslag om bærekraft
No full textVoting on shareholder proposals allows investors to exercise ownership rights by holding the board accountable and steering companies in important decisions. In several markets an increasing number of proposals focus on the environmental and social aspects of companies’ activities. Many of these shareholder proposals are well-founded initiatives aimed at improving the target company’s sustainability and financial performance. However, some proposals focus on tangential issues or attempt to micro-manage company boards. This heterogeneity means that there is no “one-size-fits-all” approach that asset managers can apply systematically when voting for or against shareholder proposals on sustainability. We explore the evolving landscape of environmental and social shareholder proposals and review available evidence on how effective these proposals are in creating value and promoting responsible business practices at companies. We discuss how asset managers can best establish voting processes that allow them to vote on sustainability shareholder proposals in a way that is consistent with their risk and return objectives. We recommend an analytical approach focused on materiality, limited prescriptiveness and consideration of company context.publishedVersio
Financial imbalances and medium-term growth-at-risk in Norway
Get PDFWe examine how measures of financial imbalances affect macroeconomic tail risks over the medium-term in Norway and in other advanced economies. We use a broad set of financial indicators to capture cyclical systemic risk in the financial system and different quantile regression models to characterise their effects on the medium-term growth distribution. We find that an increase in financial indicators is associated with both a more adverse prediction for growth-at-risk (5th percentile of growth distribution) and higher downside risks to growth (difference between the median and the 5th percentile of growth distribution). Among financial indicators, credit growth has the most significant effect on downside risks to growth. We also find that downside risks are higher under a fixed exchange rate regime. Using our estimates, we focus on two policy-relevant applications. First, we summarise how financial indicators and growth-at-risk have evolved over time in Norway and how this framework can be used to quantify and communicate risks to the economic outlook. Second, we show how this framework can be used to calibrate the severity of cyclical stress test scenarios.publishedVersio
Kostnadseffektiviseringen til de norske bankene kan forklares med automatisering og digitalisering
Get PDFDe norske bankene har redusert driftskostnadene betydelig de siste tiårene, både i forhold til inntektene og eiendelene. Det har gjort bankene mer robuste mot økte tap og redusert faren for kriser. I dette memoet analyserer jeg hvordan kostnadene er redusert og hva som har vært de viktigste drivkreftene bak kostnadseffektiviseringen. Resultatene tyder på at automatisering og digitalisering av bankdriften har spilt en sentral rolle for effektiviseringen.publishedVersio
Price-setting in the foreign exchange swap market: Evidence from order flow
Get PDFThis paper investigates price discovery in foreign exchange (FX) swaps. Using data on inter-dealer transactions, we find that a 1 standard deviation increase in order flow (i.e. net pressure to obtain USD through FX swaps) increases the cost of dollar funding by up to 4 basis points after the 2008 crisis. This is explained by increased dispersion in dollar funding costs and quarter-end periods. We find central bank swap lines reduced the order flow to obtain USD through FX swaps, subsequently affecting the forward rate. In contrast, during quarter-ends and monetary announcements we observe high frequency adjustment of the forward rate.publishedVersio
Granular credit risk
Get PDFWhat is the impact of granular credit risk on banks and on the economy? We provide the first causal identification of single-name counterparty exposure risk in bank portfolios by applying a new empirical approach on an administrative matched bank-firm dataset from Norway. Exploiting the fat tail properties of the loan share distribution we use a Gabaix and Koijen (2020a,b) granular instrumental variable strategy to show that idiosyncratic borrower risk survives aggregation in banks portfolios. We also find that this granular credit risk spills over from affected banks to firms, decreases investment, and increases the probability of default of non-granular borrowers, thereby sizably affecting the macroeconomy.publishedVersio
Årstalen 2020
No full textTale av sentralbanksjef Øystein Olsen til Norges Banks representantskap og inviterte gjester, torsdag 13. februar 2020.publishedVersio
Responsible investment and active ownership
Get PDFSpeech by Deputy Governor Jon Nicolaisen, given at Norges Bank, 19 November 2020publishedVersio
The role of monetary policy during the Covid-19 pandemic
Get PDFSpeech by Governor Øystein Olsen at the Centre for Monetary Economics (CME) / BI Norwegian Business School on 6 October 2020publishedVersio
The countercyclical capital buffer: A cross-country overview of policy frameworks
Get PDFThe countercyclical capital buffer (CCyB) is a relatively new macroprudential tool, but the number of countries that have set a positive buffer level increased significantly over recent years. Furthermore, during the Covid-19 crisis, many countries released their countercyclical capital buffers, marking the first time that the CCyB was used widely in a downturn. In this paper, we provide a comprehensive and systematic overview of the international design of CCyB frameworks, covering a broad set of experiences from 33 countries. We have identified five key areas of focus for our analysis of CCyB frameworks: 1) institutional framework and the use of buffers; 2) objectives and policy over the financial cycle; 3) use of the Basel credit gap and Basel guide; 4) the information basis for setting the buffer; and 5) communication strategy. The frameworks outlined by designated authorities have already started to evolve and it is likely that this will continue as more experience is gained. This paper can be a useful input in that process, summarizing country practices in a comprehensive set of areas relevant for the CCyB policy.publishedVersio