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The policy rate is set by Norges Banks Monetary Policy and Financial Stability Committee. The bank forecast that unless the Norwegian economy is exposed to new major shocks the banking sector was expected to show satisfactory. MFIsmany of whom collecting depositsincrease financial stability risks.
Financial imbalances and the banking sector are assessed in Norges Banks Monetary Policy Report with financial stability assessment in conjunction with Norges Banks monetary policy assessments and the decision basis for the countercyclical capital buffer for banks.
The trade-off between flexible inflation targeting and financial stability remains unclear. Schinasi has published articles in The Review of Economic Studies Journal of Economic Theory. The Financial Stability Report uses the division of credit institutions into two groups since the Latvian credit institution sector is composed of two different segments. The policy rate is set by Norges Banks Monetary Policy and Financial Stability Committee.
