The banking system, i.e., the actual payment system, is highly automated and computerized. Banking activities are regulated by the Commercial Banking Act, the Savings Bank Act and the Act on Financing and Finance Institutions. Recent liberalization of regulations now permits foreign banks to operate in Norway. It is the executive and advisory entity for monetary, credit and exchange policy. It is the sole bank of currency issue.
Commercial banks enjoy a very close relationship with trade and industry.
Savings banks have a long tradition in Norway and also cover a substantial part of local credit requirements. Merchant banks have not achieved the same position in Norway that they enjoy in some countries. This is partly because of the market dominance by the very large commercial banks, all of which maintain specialized departments covering the areas generally regarded as typical of merchant banking. There are special banks for fisheries, agriculture, shipping, industry, house building, and export finance. The State, to varying degrees, participates in all of these.