The Norwegian Ministry of Finance will propose amendments to present legislation that will make it possible to convert savings banks into public limited companies. The proposal is further described in Kredittmeldinga 2000 (The Ministry of Finance’s report regarding the Norwegian Credit and Financial Markets 2000).

Kredittmeldinga gives an overview of the work in 2000 by the Norwegian Ministry of Finance and the Banking, Insurance and Securities Commission (Kredittilsynet) in government administration of financial markets. Activity in the Banking, Insurance and Securities Commission (Kredittilsynet), the Central Bank of Norway (Norges Bank), the National Insurance Fund (Folketrygdfondet), the Bank Investment Fund (Bankinvesteringsfondet) and the Bank Insurance Fund (Banksikringsfondet) is being described in Kredittmeldinga. This year Kredittmeldinga also includes a proposal on savings banks opportunity to convert into limited companies.

According to present legislation savings banks are organised as self-owned institutions and are not allowed to convert into limited companies. The Banking Law Commision (Banklovkommisjonen) suggested in NOU 1998: 14 to adjust present legislation in order to allow such conversions to take place. During the fall 2000 Gjensidige NOR approached the Norwegian Ministry of Finance and requested an adjustment that would allow Sparebanken NOR to convert to a limited company. The Norwegian Savings Banks Association discussed the issue further and in April 2001 they decided to support the proposal to make conversions possible.

The Norwegian Ministry of Finance will propose amendments to present legislation that will make it possible to convert savings banks into private banks organised as limited companies. The Banking Law Commision and the Norwegian Savings Banks Association have suggested somewhat different models in organising converted savings banks. The Minstry’s proposal will be based on The Banking Law Commision’s proposition. This implies that shares in a savings bank is to be owned by a foundation with an exception for shares equivalent with primary capital certificates (grunnfondsbeviskapitalen). Regulations and effects regarding conversions of savings banks will be more closely examined while working with the proposal. How to improve the conditions of the smaller savings banks, e.g. to strengthen the arrangements of primary capital certificates will also be considered.