Norway banks’ oil woes increase

Norway’s financial regulator said that banks exposed to oil-industry losses face a rise in impairments that will erode profits as the full effect of the slump in crude prices runs its course.

“Norwegian banks can expect to see somewhat increased losses and reduced earnings,” said Morten Baltzersen, director general of the Financial Supervisory Authority in Oslo.

However, banks will not see “a dramatic impairment of their solvency”, he added.