While household debt remains the largest threat to Norway's financial system, short-term funding maturities have declined in the banking system, meaning banks may be more vulnerable to financial market turbulence, Norges Bank's latest financial stability report states.

"Norwegian banks' capital buffers have increased, and liquidity has improved over the past year. At the same time, some aspects of the Norwegian economy are a source of vulnerability for banks", says deputy governor Jon Nicolaisen