Deposits must again take precedence as the largest funding source for banks, said Svein Gjedrem, the governor of the Norges Bank.

Gjedrem noted that in the past the two main sources of bank funding had been Norway were retail and wholesale deposits but that in recent years institutions borrowed heavily from domestic and foreign money markets. The governor said that the crisis had proved that borrowing from the markets involved high liquidity risk for banks. He also said that banks must be