Norges Bank can offer extraordinary liquidity to the complete bank operating system or specific banking institutions whenever usage of liquidity off their sources is reduced. The extraordinary liquidity that Norges Bank can offer may avoid economic issues from distributing and so avoid a wider crisis from arising.
Norges Bank provides additional liquidity to the bank system in the type of F-loans and D-loans. If the desired liquidity need is big, collateral demands may vary from those laid straight straight straight down into the legislation on the Access of Banking institutions to Borrowing and Deposit places in Norges Bank etc. (the “Lending Regulation”) for D-loans and F-loans (cf part 6 of this legislation).
Liquidity to banks that are individual crisis liquidity support (ELA)
Norges Bank can offer extraordinary liquidity to specific banking institutions if liquidity dilemmas are restricted to one or a couple of banking institutions.More