1 Introduction

Every year, the Ministry of Finance submits a report to the Storting on developments in Norwegian and international financial markets. This year, parts the report are made available in English.

Chapter 2 addresses the financial stability outlook in Norway. It contains overviews and assessments of market conditions, risk developments for financial institutions, and the solvency and earnings of such institutions. The chapter also provides a brief overview of the efforts to ensure financial stability in Norway.

Chapter 3 provides an overview of certain key legislative initiatives and financial markets regulation developments internationally and in Norway, in part brought about by the experiences from the international financial crisis. Discussed processes include proposals for new EU rules on capital and liquidity requirements for banks (CRD IV), new rules on deposit guarantee schemes and new solvency regulations for insurance companies (Solvency II). Some sections of the chapter contain comments on the Ministry’s position and work on particular regulatory initiatives.

Chapter 4 is an account of social responsibility in the Norwegian financial sector, and specifically of Norwegian savings bank and savings-bank foundations’ philanthropy through donations to causes that serve the common good.

Chapter 5 contains a discussion of Norges Bank’s conduct of monetary policy and the Ministry’s assessment of this. This chapter corresponds to section 6.4 of the Norwegian version of the report.

The Norwegian version of the report contains in addition chapters on implemented regulatory changes and important licensing cases, and on the activities of Norges Bank, Finanstilsynet (the Norwegian financial supervisory authority), Folketrygdfondet (which manages the Government Pension Fund Norway and the Government Bond Fund) and the Norwegian State Finance Fund in 2011.