The pace of consolidation in Scandinavian banking and insurance could accelerate if proposals recently put forward by the Norwegian government are passed into law. A bill now before the Norwegian Storting (Parliament)proposes the abolition of ownership restrictions on Norwegian banks and insurance companies.
Under the current dispensation, nobody can own more than 10 per cent of the share capital of a Norwegian financial institution, though a financial institution may hold 100 per cent of another financial institution. It is now proposed to abolish these provisions, though shareholdings above a certain size will continue to be assessed by the market authorities.