Bank of Norway
Encyclopedia
Norges Bank / Noregs Bank is the central bank
of Norway
. Apart from having traditional central bank responsibilities such as financial stability and price stability, it manages The Government Pension Fund of Norway
, a stabilization fund
that is world's largest investment
pool.
On 31 December 2010, the bank had 590 employees. All Executive Board appointments are made by King Harald V
, after a decision by the Council of State
. The Chairman of the Executive Board, Øystein Olsen
, who presides over the Bank, is also the acting Central Bank Governor. Both the Governor and the Deputy Governor make speaking appearances across the country on a number of occasions each year. The security force of the bank is the only non-military security force in Norway, including the police force, that is permanently armed with firearms.
. NBIM invests the fund's assets and the foreign exchange reserves in international equities
and fixed income instruments, money market
instruments and derivative
s.
Central bank
A central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries...
of Norway
Norway
Norway , officially the Kingdom of Norway, is a Nordic unitary constitutional monarchy whose territory comprises the western portion of the Scandinavian Peninsula, Jan Mayen, and the Arctic archipelago of Svalbard and Bouvet Island. Norway has a total area of and a population of about 4.9 million...
. Apart from having traditional central bank responsibilities such as financial stability and price stability, it manages The Government Pension Fund of Norway
The Government Pension Fund of Norway
The Government Pension Fund of Norway comprises two entirely separate sovereign wealth funds owned by the Government of Norway:* The Government Pension Fund - Global...
, a stabilization fund
Stabilization fund
A stabilization fund generally refers to a mechanism set up by a government or central bank to insulate the domestic economy from large influxes of revenue, as from commodities such as oil...
that is world's largest investment
Investment
Investment has different meanings in finance and economics. Finance investment is putting money into something with the expectation of gain, that upon thorough analysis, has a high degree of security for the principal amount, as well as security of return, within an expected period of time...
pool.
On 31 December 2010, the bank had 590 employees. All Executive Board appointments are made by King Harald V
Harald V of Norway
Harald V is the king of Norway. He succeeded to the throne of Norway upon the death of his father Olav V on 17 January 1991...
, after a decision by the Council of State
Norwegian Council of State
The Norwegian Council of State consists, according to the constitution of the prime minister and at least seven other ministers, the majority of which must belong to the state church. The current number of ministers is 20.-External links:*...
. The Chairman of the Executive Board, Øystein Olsen
Øystein Olsen
Øystein Olsen is a Norwegian economist, and since January 1, 2011 Governor of the Central Bank of Norway, succeeding Svein Gjedrem in that position....
, who presides over the Bank, is also the acting Central Bank Governor. Both the Governor and the Deputy Governor make speaking appearances across the country on a number of occasions each year. The security force of the bank is the only non-military security force in Norway, including the police force, that is permanently armed with firearms.
Norges Bank Investment Management
NBIM is a separate part of Norges Bank and is responsible for the operational management of the Government Pension Fund - Global. NBIM also manages Norges Bank's foreign exchange reservesForeign exchange reserves
Foreign-exchange reserves in a strict sense are 'only' the foreign currency deposits and bonds held by central banks and monetary authorities. However, the term in popular usage commonly includes foreign exchange and gold, Special Drawing Rights and International Monetary Fund reserve positions...
. NBIM invests the fund's assets and the foreign exchange reserves in international equities
Stock
The capital stock of a business entity represents the original capital paid into or invested in the business by its founders. It serves as a security for the creditors of a business since it cannot be withdrawn to the detriment of the creditors...
and fixed income instruments, money market
Money market
The money market is a component of the financial markets for assets involved in short-term borrowing and lending with original maturities of one year or shorter time frames. Trading in the money markets involves Treasury bills, commercial paper, bankers' acceptances, certificates of deposit,...
instruments and derivative
Derivative
In calculus, a branch of mathematics, the derivative is a measure of how a function changes as its input changes. Loosely speaking, a derivative can be thought of as how much one quantity is changing in response to changes in some other quantity; for example, the derivative of the position of a...
s.
List of Central Bank Governors
- Karl Gether Bomhoff (1893–1920)
- Nicolai Rygg (1920–1946)
- Arnold C. Ræstad (head of the London branch 1940–1945)
- Gunnar JahnGunnar JahnGunnar Jahn was a Norwegian jurist, economist, statistician, politician for the Liberal Party and resistance member...
(1946–1954) - Erik BrofossErik BrofossErik Brofoss was a Norwegian economist and politician for the Labour Party.Brofoss was born in Kongsberg. In his younger days he was an athlete who competed national level in the 100 metres. He represented Kongsberg IF, and won a silver medal at the Norwegian championships in 1928...
(1954–1970) - Knut Getz WoldKnut Getz WoldKnut Getz Wold is a Norwegian economist and civil servant, who served as the Governor of the Central Bank of Norway from 1970 to 1985....
(1970–1985) - Hermod SkånlandHermod SkånlandHermod Skånland was a Norwegian economist and civil servant, who served as the Governor of the Central Bank of Norway from 1985 to 1993.- Biography :...
(1985–1993) - Torstein MolandTorstein MolandTorstein Moland is a Norwegian economist.From 1986 to 1989, during the second cabinet Brundtland, Moland was a state secretary in the Office of the Prime Minister....
(1994–1995) - Kjell StorvikKjell StorvikKjell Storvik is a Norwegian economist and former Governor of the Central Bank of Norway.He is a cand.oecon. by education. From 1977 to 1981 he was the vice president of the Norwegian Shipowners' Association. He was then State Secretary in the Ministry of Finance for four years. He was appointed...
(1996–1998) - Svein GjedremSvein GjedremSvein Ingvar Gjedrem is a Norwegian economist and former Governor of the Central Bank of Norway.He graduated in political economy from the University of Oslo in 1975, worked as a consultant in the Central Bank of Norway from 1975–1979 and in the Ministry of Finance from 1979 to 1998. He served two...
(1999–2010) - Øystein OlsenØystein OlsenØystein Olsen is a Norwegian economist, and since January 1, 2011 Governor of the Central Bank of Norway, succeeding Svein Gjedrem in that position....
(2011–present)
See also
- Economy of NorwayEconomy of NorwayThe economy of Norway is a developed mixed economy with heavy state-ownership in strategic areas of the economy. Although sensitive to global business cycles, the economy of Norway has shown robust growth since the start of the industrial era...
- Norwegian kroneNorwegian kroneThe krone is the currency of Norway and its dependent territories. The plural form is kroner . It is subdivided into 100 øre. The ISO 4217 code is NOK, although the common local abbreviation is kr. The name translates into English as "crown"...
- Carl Joachim Hambro (politician), for role in Norway's gold reserves in World War II