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Economy and Banking Sector of Norway

Norway
Location
Northern Europe
Population  (2017)
5 258 317  (+0.01%)
EU Status
not a member
Currency
NOK (Norwegian krone)
Nominal GDP (2016)
334.9 bln EUR  (-0.05%)
Credit Ratings (as of Sep 2016)
AAA/Aaa
Consolidated Banking Assets (2016)
3 626.39 bln NOK  (+5.38%)
Deposit Guarantee
2 000 000 NOK
Number of Banks
172

Norway (officially the Kingdom of Norway) is a prosperous, democratic country in Northern Europe, located mainly at the western portion of the Scandinavian Peninsula.Norway has a very high standard of living, a low level of corruption, and a high level of education and health care. Norway has achieved these highest standards of living in the world partially by having a large amount of natural resources compared to the size of its population.

Norway has mixed economy with free market activity and large state ownership in certain key sectors (for example, in petroleum sector, hydroelectric energy production, aluminium production, telecommunications and banking).

Banking sector in Norway is dominated by domestic commercial and regional savings banks, with a number of foreign-controlled banks from Western and Northern Europe.

List of Banks in Norway

National Currency

Norwegian Krone (NOK)

Exchange Rate

1 EUR = 9.6893 NOK (2018-02-22)

During the last 11 years EURNOK exchange rate was within the range 7.2925 - 9.7500, reaching its maximum in Dec 2008 and falling to its minimum in Aug 2012.

Euro to Norwegian krone (EURNOK).

Chart 1. Euro to Norwegian krone (EURNOK). Source: ECB.

GDP

Nominal GDP (2016)Nominal GDP per Capita (2016)Real GDP Growth (2016)
334.9 bln EUR  (-0.05%)64 000 EUR  (-0.06%)1.0 %  (2015: 1.6 %)

According to Eurostat, nominal GDP of Norway in 2016 was 334.9 bln EUR.

Norway underperforms the European Union in terms of real GDP growth with the average annual differential coming to -0.1% over the past 10 years (2006 - 2016). In 2016 real GDP growth was 1.0% which was below the Euro Area average (1.8%) and below the European Union average (1.9%). Real GDP growth in 2017 - 2022 are IMF's estimates.

Real GDP Growth in Norway.

Chart 2. Real GDP Growth in Norway. Source: Eurostat, International Monetary Fund.

In 2016, nominal GDP per capita in Norway was 64 000 EUR.

Norway has an above-average level of wealth in terms of per-capita GDP at purchasing power parity (PPP); this economic welfare indicator has, on average, exceeded that of the European Union by 62.8% over the past 10 years (2006 - 2016). GDP per capita at PPP in 2017 - 2022 are IMF's estimates.

GDP Per Capita at Purchasing Power Parity in  Norway; European Union = 100.

Chart 3. GDP Per Capita at Purchasing Power Parity in Norway; European Union = 100.

Inflation Rate

CPI, MoM (Sep 2017)CPI, YoY (Sep 2017)CPI, Year Average (2016)
0.7 %  (Aug 2017: -0.8 %)1.6 %  (Aug 2017: 1.3 %)3.9 %  (2015: 2.0 %)

According to Eurostat, inflation rate in Norway in 2016 expressed as annual percentages of average consumer prices was 3.9% which was above the Euro Area average (0.2%) and above the European Union average (0.3%). Inflation rates in 2017 - 2022 are IMF's estimates.

Inflation Rate in Norway.

Chart 4. Inflation Rate in Norway. Source: Eurostat, International Monetary Fund.

Unemployment Rate

Unemployment Rate (2016)
4.7 %  (2015: 4.4 %)

Credit Ratings (as of Sep 2016)

Fitch Moody's
AAA (highest credit quality), outlook stable Aaa (prime), outlook stable

Withholding Tax

Withholding taxes are imposed at source of income and are often applied to dividends, interest, royalties, rent and similar payments. The rates of withholding tax are often reduced by double taxation agreements.

Withholding Tax Rates in Norway: 0.0 - 25.0%

Withholding tax rates applied on payments of interest and dividends in Norway are shown in Table 1.

Dividends Interest
Natural person, resident 0.0 %0.0 %
Natural person, non-resident 25.0 %0.0 %
Table 1. Withholding tax rates in Norway.

Double Taxation Agreements

Double Taxation Agreement (DTA) is an agreement between two or more countries for the avoidance of double taxation.

DTAs of Norway: 82 Signed Agreements

Norway signed DTAs which already came info force with the following jurisdictions (for agreements which came into force after 1 January 2013 the date of coming into force is given in brackets):

 Albania
 Argentina
 Australia
 Austria
 Azerbaijan
 Bangladesh
 Barbados
 Belgium
 Benin
 Brazil
 Bulgaria
 Canada
 Chile
 China
 Cote D'Ivoire
 Croatia
 Curacao
 Cyprus
 Czech Republic
 Egypt
 Estonia
 France
 Gambia
 Georgia
 Germany
 Greece
 Hungary
 Iceland
 India
 Indonesia
 Ireland
 Israel
 Italy
 Jamaica
 Japan
 Kazakhstan
 Kenya
 Korea, Republic of
 Latvia
 Lithuania
 Luxembourg
 Macedonia
 Malaysia
 Malta (Feb 2013)
 Mexico
 Morocco
 Nepal
 Netherlands
 New Zealand
 Pakistan
 Philippines
 Poland
 Portugal
 Qatar
 Romania
 Russian Federation
 Senegal
 Serbia
 Sierra Leone
 Singapore
 Sint Maarten (Dutch part)
 Slovakia
 Slovenia
 South Africa
 Spain
 Sri Lanka
 Switzerland
 Tanzania, United Republic of
 Thailand
 Trinidad and Tobago
 Tunisia
 Turkey
 Uganda
 Ukraine
 United Kingdom (Dec 2013)
 United States
 Venezuela
 Vietnam
 Zambia
 Zimbabwe

There are also several agreements between Norway and other jurisdictions which were signed but haven't yet come into force (for agreements signed after after 1 January 2013 of signing the agreement is given in brackets):

 Bosnia and Herzegovina
 Malawi

Information Exchange

There are 3 ways for jusrisdictions to exchange information on tax matters:

  • spontaneously;
  • on request;
  • automatically.

Spontaneous exchange of information is provision of information that is forseeably relevant to another party without a request being previously sent.

Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.

Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.

Exchange on Request: 44 Signed Agreements

Norway signed TIEAs which already came info force with the following jurisdictions (for agreements which came into force after 1 January 2013 the date of coming into force is given in brackets):

 Andorra
 Anguilla
 Antigua and Barbuda
 Aruba
 Bahamas
 Bahrain
 Belize
 Bermuda
 British Virgin Islands
 Cayman Islands
 Cook Islands
 Denmark
 Dominica
 Faroe Islands
 Finland
 Gibraltar
 Greenland
 Grenada
 Guernsey
 Isle of Man
 Jersey
 Liberia
 Liechtenstein
 Macau
 Marshall Islands
 Mauritius
 Monaco
 Montserrat
 Panama (Dec 2013)
 Saint Kitts and Nevis
 Saint Lucia
 Saint Vincent and The Grenadines
 Samoa
 San Marino
 Sweden
 Turks and Caicos Islands
 Uruguay (Jan 2014)

There are also several agreements between Norway and other jurisdictions which was signed but haven't yet come into force (for agreements signed after 1 January 2013 of signing the agreement is given in brackets):

 Botswana (Feb 2013)
 Brunei Darussalam
 Costa Rica
 Guatemala
 Niue (Oct 2013)
 Seychelles
 Vanuatu

Automatic Exchange: Starts in September 2017

Norway signed the automatic information exchange agreement on 29 October 2014 and committed to start the automatic information exchange in September 2017.

Automatic Excnange: 54 Bilateral Agreements to Receive Information

Norway has signed bilateral agreements with 54 jurisdictions to automatically receive information:

 Argentina
 Australia
 Austria
 Belgium
 Brazil
 Bulgaria
 Canada
 China
 Colombia
 Croatia
 Czech Republic
 Denmark
 Estonia
 Faroe Islands
 Finland
 France
 Germany
 Gibraltar
 Greece
 Greenland
 Guernsey
 Hungary
 Iceland
 India
 Ireland
 Isle of Man
 Italy
 Japan
 Jersey
 Korea, Republic of
 Latvia
 Liechtenstein
 Lithuania
 Luxembourg
 Malaysia
 Malta
 Mauritius
 Mexico
 Monaco
 Netherlands
 New Zealand
 Poland
 Portugal
 San Marino
 Seychelles
 Singapore
 Slovakia
 Slovenia
 South Africa
 Spain
 Sweden
 Switzerland
 United Kingdom
 Uruguay

Automatic Excnange: 68 Bilateral Agreements to Send Information

Norway has signed bilateral agreements with 68 jurisdictions to automatically send information:

 Anguilla
 Argentina
 Australia
 Austria
 Belgium
 Belize
 Bermuda
 Brazil
 British Virgin Islands
 Bulgaria
 Canada
 Cayman Islands
 China
 Colombia
 Costa Rica
 Croatia
 Cyprus
 Czech Republic
 Denmark
 Estonia
 Faroe Islands
 Finland
 France
 Germany
 Gibraltar
 Greece
 Greenland
 Guernsey
 Hungary
 Iceland
 India
 Indonesia
 Ireland
 Isle of Man
 Italy
 Japan
 Jersey
 Korea, Republic of
 Latvia
 Liechtenstein
 Lithuania
 Luxembourg
 Malaysia
 Malta
 Mauritius
 Mexico
 Monaco
 Montserrat
 Netherlands
 New Zealand
 Poland
 Portugal
 Romania
 Saint Lucia
 Saint Vincent and The Grenadines
 Samoa
 San Marino
 Seychelles
 Singapore
 Slovakia
 Slovenia
 South Africa
 Spain
 Sweden
 Switzerland
 Turks and Caicos Islands
 United Kingdom
 Uruguay

Further Information

FATCA

Foreign Account Tax Compliance Act (FATCA) which became law in the United States in March 2010, focuses on reporting made by foreign financial institutions about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. The FATCA-reporting is facilitated by Intergovernmental Agreements (IGAs).

FATCA Status in Norway
IGA in effect since 15 April 2013, Model 1

Norway has FATCA agreement with the U.S. in effect since 15 April 2013 (Intergovernmental Agreement Model 1). Financial institutions operating in Norway are required to identify U.S. taxpayers by January 1, 2017 and to report the information for 2017 and the subsequent years. The agreement is reciprocal: Norwegian financial accounts hold in U.S. financial institutions will be reported to Norwegian authorities.

Further Information

Financial Market Development

Financial Market Development
5.2 (max 7.0), 9th out of 138 countries
Banks' Soundness
6.3 (max 7.0), 8th out of 138 countries

According to World Economic Forum's Global Competitiveness Report 2017-2018, financial market development in Norway is scored 5.2 out of maximum 7.0 and ranked 9th out of 138 analysed economies, trustworthiness and confidence of financial market is scored 5.3 (18th place).

Financial Market Development in Norway.

Chart 5. Financial Market Development in Norway. Source: WEF.


Soundness of banks is scored 6.3 bringing Norway into the 8th place.

Soundness of Banks in Norway.

Chart 6. Soundness of Banks in Norway. Source: WEF.

Further Information

Deposit Guarantee Scheme

Maximum Protected Amount
2 000 000 NOK

Deposit Guarantee Schemes compensate certain deposits held by depositors of a bank that becomes unable to meet its obligations.

From a depositor's point of view it is important to know:

  • if the depositor is eligible within the terms of the deposit guarantee scheme;
  • if the depositor's bank is a participant in the deposit guarantee scheme;
  • if the depositor's type of deposit is covered by the deposit guarantee scheme.

All these details about deposit guarantee scheme in Norway are summarised in Table 2.

Scheme Participantsall credit institutions operating in Norway, branches of non-EEA banks, branches of Norwegian banks abroad
Scheme Exemptionsbranches of EEA-banks (covered by their home countries)
Eligible Depositorsnatural persons, legal entities
Covered Accountsany credit balance on a named account, and any debt evidenced by a certificate of deposit issued to a named person
Maximum Protected Amount2 000 000 NOK
Paid In CurrencyNOK

Table 2. Deposit guarantee scheme in Norway.

EEA stands for European Economic Area and consists of all EU member states plus Liechtenstein, Norway and Iceland.

Further Information

Country Ceiling for Deposits

Moody's country ceilings for deposits specify the highest rating that can be assigned to local- or foreign- currency denominated deposit obligations of a bank or other deposit taking institution domiciled within that country.

Local Currency (Norwegian krone) Foreign Currency
Aaa (prime) Aaa (prime)

Local currency (Norwegian krone) deposit ceiling for Norway is set to Aaa (prime), foreign currency deposit ceiling is Aaa (prime).

Banking Sector Structure

Number of Banks
172
Consolidated Assets (2016)
3 626.39 bln NOK  (+5.38%)
Recent Changes (2016)
new banks: 5, closed banks: 4

Currently there are 172 credit institutions operating in Norway.

In 2016 consolidated banking assets in Norway were 3 626.39 bln NOK. The consolidated banking assets' evolution is shown at Chart 7 below.

Consolidated banking assets in Norway.

Chart 7. Consolidated banking assets in Norway.

Recent structural changes (2013 - 2016) of the banking sector of Norway are summarised in Table 3.

2013201420152016
Number of Opened Banks2235
Number of Closed Banks3224

Table 3. Recent structural changes in the banking sector of Norway.

The list of the most recently opened banks in Norway is provided in Table 4.

NameStart Date
 MARITIME & MERCHANT BANK ASA (new)December 2016
 SKAGERRAK SPAREBANK (new)December 2016
 INSTABANK ASA (new)September 2016
 EASYBANK ASA (new)January 2016
 Citibank Europe PLC (new)January 2016
 MONOBANK ASA (new)November 2015
 SKANDIABANKEN ASA (new)September 2015
 Safe Deposit Bank of Norway AS (new)July 2015
 GRENKE BANK AG BRANCH NORWAY (new)November 2014
 KOMPLETT BANK ASA (new)March 2014
 

Table 4. The most recently opened banks in Norway.

All the credit institutions operating in Norway can be classified into several categories. Table 5 summarises the number of banks in each category.

CategoryNumber of Banks
Branches of foreign banks42
Central banks1
Commercial banks25
Savings banks103
Special purpose banks1

Table 5. Number of banks by category in Norway.

There are 40 branches of foreign banks from 8 different countries in Norway. Table 6 shows the number of branches grouped by the country of origin.

Country of OriginNumber of Branches
 Sweden26
 Ireland3
 Germany3
 United Kingdom3
 Denmark2
 Netherlands1
 Belgium1
 France1

Table 6. Number of branches of foreign banks in Norway grouped by country of origin.

Major Banks of Norway

RankNameTotal AssetsMarket Share
1 DNB BANK ASA2003905.92 mln NOK55.26 %
2 SpareBank 1 SR-Bank166318.00 mln NOK4.59 %
3 SPAREBANK 1 SMN136062.03 mln NOK3.75 %
4 SANTANDER CONSUMER BANK AS128516.87 mln NOK3.54 %
5 SPAREBANKEN VEST108303.83 mln NOK2.99 %
6 SPAREBANK 1 NORD-NORGE88521.97 mln NOK2.44 %
7 Sparebanken Sør79590.72 mln NOK2.19 %
 

DNB BANK ASA

DnB NOR Bank offers a full range of financial services, including loans, savings, advisory services, insurance and pension products for retail and corporate customers. DnB NOR Bank serves its customers via branches in Norway, in-store postal and banking outlets, post office counters, Internet banking, and mobile services.

DNB BANK ASA is the 1st largest bank in Norway in terms of total assets. In 2016 its total assets were 2 003,91 bln NOK, providing the bank with the market share of 55.26%. DNB BANK ASA is the 1st largest commercial bank in Norway (out of 18 banks) having market share of 84.56% amongst the banks of this category. In 2016 the bank's operating income was 20 011,59 mln NOK.

DNB BANK ASA is rated by Fitch, Moody's. Long-term credit rating assigned to the bank by Fitch is A+ (high credit quality). Long-term credit rating assigned to the bank by Moody's is Aa2 (high grade). DNB BANK ASA participates in deposit guarantee scheme of Norway. This scheme covers accounts up to 2 000 000 NOK per bank per depositor.

SPAREBANK 1 SR-BANK ASA

SPAREBANK 1 SR-BANK ASA is a local savings bank,focused on retail banking and insurance products and services tolocal residends: private individuals, SMEs and companies. The range of products offered by SPAREBANK 1 SR-BANK ASA includes current accounts, payment cards, savings accounts, consumer loans, car loans and mortgage loans.

Services
Retail Banking
Insurance

SPAREBANK 1 SR-BANK ASA is the 2nd largest bank in Norway in terms of total assets. In 2016 its total assets were 166,32 bln NOK, providing the bank with the market share of 4.59%. SPAREBANK 1 SR-BANK ASA is the 1st largest savings bank in Norway (out of 104 banks) having market share of 13.24% amongst the banks of this category. In 2016 the bank's operating income was 2 264,00 mln NOK.

SPAREBANK 1 SR-BANK ASA is rated by Fitch, Moody's. Long-term credit rating assigned to the bank by Fitch is A- (high credit quality). Long-term credit rating assigned to the bank by Moody's is A1 (upper medium grade). SPAREBANK 1 SR-BANK ASA participates in deposit guarantee scheme of Norway. This scheme covers accounts up to 2 000 000 NOK per bank per depositor.

SPAREBANK 1 SMN

SPAREBANK 1 SMN is a local savings bank,focused on retail banking and insurance products and services tolocal residends: private individuals, SMEs and companies. The range of products offered by SPAREBANK 1 SMN includes current accounts, payment cards, savings accounts, consumer loans, car loans and mortgage loans.

Services
Retail Banking
Insurance

SPAREBANK 1 SMN is the 3rd largest bank in Norway in terms of total assets. In 2016 its total assets were 136,06 bln NOK, providing the bank with the market share of 3.75%. SPAREBANK 1 SMN is the 2nd largest savings bank in Norway (out of 104 banks) having market share of 10.83% amongst the banks of this category. In 2016 the bank's operating income was 1 945,37 mln NOK.

SPAREBANK 1 SMN is rated by Fitch, Moody's. Long-term credit rating assigned to the bank by Fitch is A- (high credit quality). Long-term credit rating assigned to the bank by Moody's is A1 (upper medium grade). SPAREBANK 1 SMN participates in deposit guarantee scheme of Norway. This scheme covers accounts up to 2 000 000 NOK per bank per depositor.

SANTANDER CONSUMER BANK AS

SANTANDER CONSUMER BANK AS, a member of Santander Group (Spain), is a provider of financial services in retail banking. The head bank of the group, Banco Santander, based in Madrid is mainly active in retail banking and in addition in global wholesale banking, cards, asset management and insurance business.

Services
Retail Banking

SANTANDER CONSUMER BANK AS is the 4th largest bank in Norway in terms of total assets. In 2016 its total assets were 128,52 bln NOK, providing the bank with the market share of 3.54%. SANTANDER CONSUMER BANK AS is the 2nd largest commercial bank in Norway (out of 18 banks) having market share of 5.42% amongst the banks of this category. In 2016 the bank's operating income was 3 079,83 mln NOK.

SANTANDER CONSUMER BANK AS is rated by Moody's. Long-term credit rating assigned to the bank by Moody's is A3 (upper medium grade). SANTANDER CONSUMER BANK AS participates in deposit guarantee scheme of Norway. This scheme covers accounts up to 2 000 000 NOK per bank per depositor.

SPAREBANKEN VEST

SPAREBANKEN VEST is a local savings bank,focused on retail banking and insurance products and services tolocal residends: private individuals, SMEs and companies. The range of products offered by SPAREBANKEN VEST includes current accounts, payment cards, savings accounts, consumer loans, car loans and mortgage loans.

Services
Retail Banking
Insurance

SPAREBANKEN VEST is the 5th largest bank in Norway in terms of total assets. In 2016 its total assets were 108,30 bln NOK, providing the bank with the market share of 2.99%. SPAREBANKEN VEST is the 3rd largest savings bank in Norway (out of 104 banks) having market share of 8.62% amongst the banks of this category. In 2016 the bank's operating income was 1 869,14 mln NOK.

SPAREBANKEN VEST is rated by Fitch, Moody's. Long-term credit rating assigned to the bank by Fitch is A- (high credit quality). Long-term credit rating assigned to the bank by Moody's is A1 (upper medium grade). SPAREBANKEN VEST participates in deposit guarantee scheme of Norway. This scheme covers accounts up to 2 000 000 NOK per bank per depositor.

SPAREBANK 1 NORD-NORGE

SPAREBANK 1 NORD-NORGE is a local savings bank,focused on retail banking and insurance products and services tolocal residends: private individuals, SMEs and companies. The range of products offered by SPAREBANK 1 NORD-NORGE includes current accounts, payment cards, savings accounts, consumer loans, car loans and mortgage loans.

Services
Retail Banking
Insurance

SPAREBANK 1 NORD-NORGE is the 6th largest bank in Norway in terms of total assets. In 2016 its total assets were 88 521,97 mln NOK, providing the bank with the market share of 2.44%. SPAREBANK 1 NORD-NORGE is the 4th largest savings bank in Norway (out of 104 banks) having market share of 7.05% amongst the banks of this category. In 2016 the bank's operating income was 1 715,11 mln NOK.

SPAREBANK 1 NORD-NORGE is rated by Fitch, Moody's. Long-term credit rating assigned to the bank by Fitch is A (high credit quality). Long-term credit rating assigned to the bank by Moody's is A1 (upper medium grade). SPAREBANK 1 NORD-NORGE participates in deposit guarantee scheme of Norway. This scheme covers accounts up to 2 000 000 NOK per bank per depositor.

Sparebanken Sør

Sparebanken Sør is a local savings bank,focused on retail banking and insurance products and services tolocal residends: private individuals, SMEs and companies. The range of products offered by Sparebanken Sør includes current accounts, payment cards, savings accounts, consumer loans, car loans and mortgage loans.

Services
Retail Banking
Insurance

Sparebanken Sør is the 7th largest bank in Norway in terms of total assets. In 2016 its total assets were 79 590,72 mln NOK, providing the bank with the market share of 2.19%. Sparebanken Sør is the 5th largest savings bank in Norway (out of 104 banks) having market share of 6.33% amongst the banks of this category. In 2016 the bank's operating income was 1 013,64 mln NOK.

Sparebanken Sør is rated by Moody's. Long-term credit rating assigned to the bank by Moody's is A1 (upper medium grade). Sparebanken Sør participates in deposit guarantee scheme of Norway. This scheme covers accounts up to 2 000 000 NOK per bank per depositor.

Savings Accounts: 5 Offers from 1 Bank

Interest Rates: 0.45 - 0.45 % p.a.
Account Terms: 1 - 12 months

5 savings accounts offers from 1 bank operating in Norway are currently available. The savings accounts terms vary from 1 month to 1 years (12 months). The interest rates are within the range 0.45 - 0.45 %.

View All Offers
Highest Interest Rate Offer: Tagesgeld Weltsparen (MONOBANK ASA)
Interest Rate: 0.45 % p.a.
Account Term: 1 months

MONO BANK is a Norwegian direct bank offering loans without collateral and high interest savings accounts.