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 as well as further details of competition in the banking market.

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. Processes that are highlighted include implementation of new EU rules on capital and liquidity requirements for banks (CRD IV), outline of different initiatives regarding requirements for systemically important institutions 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.

The Norwegian version of the report contains in addition chapters on the organisation and activity in the Norwegian Financial Services Complaints Board, vulnerability in the financial infrastructure, 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 2012.