Norway’s central bank maintained the counter-cyclical capital buffer at 2.5% on May 10, while warning of risks from households’ high indebtedness and banking instability.

Norges Bank’s financial stability report for the first half of 2023 said the collapse of US and Swiss banks has contributed to market volatility.

“There has been little impact on Norwegian banks so far, but the turbulence may intensify and spread,” says the report. “Bank funding may become more costly, and borrowing may