Norges Bank has published its bi-annual Financial Stability Report, finding that while the Norwegian financial system remains resilient, the risk of serious events that could weaken financial stability has increased.

The central bank cited geopolitical tensions, cyber threats, high and rising government debt in many countries, and uncertainty around artificial intelligence as key factors shaping the risk outlook. Norges Bank noted that in a globally interconnected financial system, external shocks can rapidly affect Norway’s domestic financial sector.

On the household side, Norges Bank assessed that vulnerability associated with high household debt has decreased somewhat. Although Norwegian households remain highly indebted, debt growth has been slower than income growth in recent years, and wage increases over the past two years have outpaced price rises, improving debt-servicing capacity and purchasing power even after accounting for higher interest rates. Liquid buffers among households are also showing signs of recovery following a post-pandemic decline.

Commercial real estate remains an area of concern. Norwegian banks carry substantial exposures to the sector, and while solvency in commercial real estate improved somewhat over the past two years, higher interest rates continue to pressure property values. Elevated construction and financing costs have reduced demand for new residential and commercial property, and bankruptcies in the sector have risen markedly, with banks reporting an increased risk of default.

Banks themselves remain on solid footing, with losses low and capital and liquidity requirements met by an ample margin. Households and firms continue to have broad access to credit. At its meeting on 4 November 2026, Norges Bank’s committee decided to keep the countercyclical capital buffer rate unchanged at 2.5 percent, a level the bank said is supporting the resilience of the financial system.

Source: Norges Bank. Read the original (published 2026-11-11).