Norway's finance ministry said Dec. 15 that it will increase the countercyclical capital buffer rate for banks to 2% from 1.5%, beginning Dec. 31, 2017.

The increase is in line with a recommendation from Norges Bank, Norway's central bank, which cited growing risk to financial stability brought by growth in household debt and house prices as the key driver of the increase in the buffer rate.

The buffer requires banks to set aside additional capital above their ordinary minimum requirement. The countercyclical buffer is used when financial imbalances are growing or have grown, the finance ministry noted.