Norway rejects bank regulator proposal, seeks other capital measures

OSLO, May 23 (Reuters) - Norway’s finance ministry has rejected a proposal by the country’s bank regulator to change the way systemically important banks are identified and instead will consider alternative measures, the ministry said on Thursday.

The proposal had been opposed by regional banks, which would have been identified as systemically important under the regulation and could therefore have faced increased capital buffer requirements.

The government will still consider making changes in banks’ capital requirements, however, the ministry said.

The primary purpose of a change would be to mitigate the effects on the capital of Norwegian banks from recently adopted European Union regulations.

If no change is made, some Norwegian banks would potentially be allowed to reduce the buffer capital they currently hold, the ministry said. (Reporting by Terje Solsvik; editing by Jason Neely)