Kommunalbanken
Encyclopedia
Kommunalbanken, sometimes branded as Kommunalbanken Norway is a Norwegian
bank
that offers loan
s exclusively to the municipal
and county sector. The banks portfolio was NOK
76.7 billion as of 2006, and 45 % of all municipal and county debt is though Kommunalbanken, with about 95% of all counties and municipalities being customers. Included among those absent are those so wealthy from hydroelectricity
production that they do not require debt
to finance investments. Kommunalbanken also issues loans to Municipal Enterprises
, County Enterprises
and Intermunicipal Companies
, all that are extensions of the liability
of the municipalities and counties themselves. Kommunalbanken is a limited company
owned by the Norwegian Ministry of Local Government (80%) and National Local Government Pension Fund (Kommunenes Landspensjonskasse, 20%). Before 1999 it was a Government agency
called Norges Kommunalbank that was founded in 1927.
Norway
Norway , officially the Kingdom of Norway, is a Nordic unitary constitutional monarchy whose territory comprises the western portion of the Scandinavian Peninsula, Jan Mayen, and the Arctic archipelago of Svalbard and Bouvet Island. Norway has a total area of and a population of about 4.9 million...
bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
that offers loan
Loan
A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower....
s exclusively to the municipal
Municipalities of Norway
Norway is divided into 19 administrative regions, called counties , and 430 municipalities...
and county sector. The banks portfolio was NOK
Norwegian krone
The krone is the currency of Norway and its dependent territories. The plural form is kroner . It is subdivided into 100 øre. The ISO 4217 code is NOK, although the common local abbreviation is kr. The name translates into English as "crown"...
76.7 billion as of 2006, and 45 % of all municipal and county debt is though Kommunalbanken, with about 95% of all counties and municipalities being customers. Included among those absent are those so wealthy from hydroelectricity
Hydroelectricity
Hydroelectricity is the term referring to electricity generated by hydropower; the production of electrical power through the use of the gravitational force of falling or flowing water. It is the most widely used form of renewable energy...
production that they do not require debt
Debt
A debt is an obligation owed by one party to a second party, the creditor; usually this refers to assets granted by the creditor to the debtor, but the term can also be used metaphorically to cover moral obligations and other interactions not based on economic value.A debt is created when a...
to finance investments. Kommunalbanken also issues loans to Municipal Enterprises
Kommunalt foretak
Kommunalt foretak or KF, in English: Municipal Enterprise is a type of enterprise owned by Norwegian municipalities. Fylkeskommunalt foretak or FKF, in English: County Enterprise is an equivalent enterprise owned by a county. KFs and FKFs offer no limited liability for the owner, though they do...
, County Enterprises
Kommunalt foretak
Kommunalt foretak or KF, in English: Municipal Enterprise is a type of enterprise owned by Norwegian municipalities. Fylkeskommunalt foretak or FKF, in English: County Enterprise is an equivalent enterprise owned by a county. KFs and FKFs offer no limited liability for the owner, though they do...
and Intermunicipal Companies
Interkommunalt selskap
Interkommunalt selskap or IKS, in English: Intermunicipal company is a type of municipal or county owned company in Norway. It resembles very closely to a Municipal Enterprise or County Enterprise, but the IKS requires multiple municipalities and/or counties to be owners. The form is regulated by...
, all that are extensions of the liability
Legal liability
Legal liability is the legal bound obligation to pay debts.* In law a person is said to be legally liable when they are financially and legally responsible for something. Legal liability concerns both civil law and criminal law. See Strict liability. Under English law, with the passing of the Theft...
of the municipalities and counties themselves. Kommunalbanken is a limited company
Aksjeselskap
Aksjeselskap is the Norwegian term for a stock-based company. It is usually abbreviated AS or A/S, especially when used in company names. An AS is always a limited company, i.e. the owners cannot be held liable for any debt beyond the stock capital...
owned by the Norwegian Ministry of Local Government (80%) and National Local Government Pension Fund (Kommunenes Landspensjonskasse, 20%). Before 1999 it was a Government agency
Etat
Etat is a Norwegian state-, county- or municipal agency. An Etat is a subdivision of the administration, which has been given responsibility for a special area. An agency does not have a board of directors, but it does have a director, appointed by the subordinate organization. Normally decisions...
called Norges Kommunalbank that was founded in 1927.