Credit Suisse warns of oil losses hitting banks in Norway

Swiss lender: Construction workers stand on scaffolding in front of the logo of Swiss bank Credit Suisse at the Bahnhofstrasse in Zurich. – Reuters

COPENHAGEN: As Norway falls deeper into an oil-induced slump, its financial watchdog is adjusting rules on how much capital banks must hold to cope with such shocks.

According to Credit Suisse, the changes will mean higher capital requirements for Norwegian banks and fewer rewards for investors, as the Oslo-based Financial Supervisory Authority (FSA) imposes some of Europe’s toughest standards.