Bank Regulation and Bank Crisis: The Main Developments in the Norwegian Regulatory System Before, During, and After the Banking Crisis of 1988-92
Financial Market Regulation in the Wake of Financial Crises: The Historical Experience Conference p. 169, 2009
16 Pages Posted: 8 Jul 2012
Date Written: April 16, 2009
The Norwegian experiences of the past thirty years illustrate what we believe are two general tendencies in bank regulation. The first one is that a bank crisis will tend to focus regulators' minds and lead to stricter regulations. The second one is that cycles in regulation tend to interact with the economic cycle, in the sense that the rationale for strong regulation tends to become somewhat blurred when the economy is booming. These patterns appear in the Norwegian experience after the banking crisis of 1988-92, and they can presumably also be recognized in many other jurisdictions.
JEL Classification: G28, N44
Suggested Citation: Suggested Citation