Report of the Law Commission on the Act relating to Norges Bank and the Monetary System

“The current Act is from 1985, and the central bank’s tasks have since been affected by a range of developments, including the delegation of responsibility for the operational management of the Fund to Norges Bank at a time when virtually no one could foresee the complexity or size of today’s Fund,” says Minister Jensen.

The Commission, which was chaired by former central bank governor and former secretary general of the Ministry of Finance Svein Gjedrem, was appointed on 10 April 2015 to review the Norges Bank Act in the light of the considerable changes in the tasks of the central bank. The Commission was also mandated to consider the governance structure of Norges Bank and the relationship between the central bank and the central government authorities, with regard for international practice in the area, including the use of policy committees. An important part of the mandate has been to assess the organisation of the management of the Government Pension Fund Global.

“I am looking forward to examining the Commission’s assessments and recommendations. Norges Bank has been successful in performing its central banking and investment management tasks. At the same time, Norges Bank’s scope of responsibilities is substantial. The mandate was designed to be forward-looking, and the Commission’s task has been to assess whether today’s organisation is best suited also when looking ahead. The Report will form an important part of the basis for addressing an issue of such importance,” says the Minister.

The Report will be circulated for comment today.

Read more:

• Press release from the Commission: The Government Pension Fund Global should be managed by a separate statutory entity
• Press release from the Commission:Norges Bank should have a committee for monetary policy and financial stability and an independent board
• Press release from the Commission:Proposal on a new central bank act
• The report: NOU 2017: 13 - New central bank act
• Commentary article by chair of the Commission, Svein Gjedrem: "The management of the Government Pension Fund Global"
• Memorandum by Cleary Gottlieb Steen & Hamilton LLP: Memorandum for Norges Bank, Re: Sovereign immunity and Proposed Restructuring of Fund
• Study prepared for the Norges Bank Governance Review Commission by Keith Ambachtsheer: «Norway’s Government Pension Fund Global: How should it be governed?”