meta_id 3093032

On the date of publication, Norway's Financial Supervisory Authority (Finanstilsynet) released a supervision report following an examination of BN Bank ASA. The supervision covered the bank's credit risk management, loss provisions calculations under International Financial Reporting Standard 9 (IFRS 9), and capital requirements for credit risk using the Internal Ratings-Based (IRB) method. Finanstilsynet identified several findings requiring attention. The authority noted concerns regarding the bank's risk profile and credit practices, including high concentration exposure to commercial real estate, weaknesses in credit and valuation assessments, and deficiencies in the application and validation of Expected Credit Loss (ECL) and IRB models. These findings indicate gaps in the bank's risk management framework and model governance procedures. Finanstilsynet will monitor BN Bank ASA's implementation of remedial measures throughout 2026. The supervision report has been sent to the bank and published on Finanstilsynet's website. Should the bank have breached regulatory requirements, Finanstilsynet may issue formal decisions, which would be documented in the supervision report. Potential enforcement actions available to Finanstilsynet include requiring the bank to remedy breaches, imposing administrative fines, or withdrawing authorisations, depending on the nature and severity of any violations identified. REFERENCE: Finanstilsynet. Tilsynsrapport - BN Bank ASA. Available at: https://www.finanstilsynet.no/