The financial turbulence was triggered by problems in the US subprime housing market in August 2007, but gained momentum in autumn 2008.

With a view to curbing the effects of the turbulence Norges Bank has implemented a range of measures to boost liquidity in the banking system. Norges Bank has provided loans with maturities that are longer than normal and has expanded the list of eligible bank collateral for loans.

• Steps taken by Norges Bank
• F-loans. Auctions and auction results
• Guidelines for pledging securities as collateral for loans from Norges Bank
• Foreign currency loans - results
• FX-swaps

The Storting (Norwegian parliament) has adopted a package providing for an arrangement whereby banks can exchange safe, but today illiquid residential mortgage-backed bonds for highly liquid government securities.

• Information about the swap arrangement for securities

Higher money market premiums have led to higher interest rates on loans to both households and firms. As most residential mortgages in Norway are floating-rate loans, money market rates have a greater bearing on Norwegian households than households in most other European countries. Liquidity measures in Norway and other countries have resulted in some decline in premiums. Combined with a reduction in Norges Bank’s key policy rate in October and December 2008, this has prompted several banks to reduce their deposit and lending rates and to cancel previously announced increases.

• FAQ – Financial turbulence