KBN - Parliament requests assessment of risk weights
09 December 2025It is currently uncertain whether the Government will propose changes and what the impact of such potential changes could be.
The Norwegian Parliament adopted the following request to the Government on Friday, 5 December 2025 in connection with the approval of the state budget for 2026:
“The Government shall assess whether loans to municipalities should have the same risk weight as loans to the central government in the capital requirements regulations. In this context, the Government is also asked to assess whether Kommunalbanken’s risk weight should be changed and whether Kommunalbanken should be given the status of promotional bank.”
We have received questions about what impact the decision may have on KBN and the market for municipal securities. The assessment might be relevant for the regulations on capital and liquidity requirements and on recovery and resolution management.
The legislature has only requested an assessment of the matter. It is currently uncertain whether the Government will propose changes and what the impact of such potential changes could be. Kommunalbanken welcomes the assessment process and is available to answer any questions the Government may have in this regard.