Kommunalbanken AS Due Diligence

Run due diligence on Kommunalbanken AS: check compliance and get alerts when suppliers or ownership change.

Norway · owned by Norwegian Ministry of Local Government and Regional Development (Kingdom of Norway) (Norway) · kommunalbanken.no · 12 vendors

Kommunalbanken AS (KBN) is a Norwegian state-owned financial institution that provides long-term, low-cost loans to Norwegian municipalities, county authorities, and other public-sector entities. It is fully owned by the Norwegian state and serves as the primary source of financing for the Norwegian local government sector. KBN raises funds in international capital markets and on-lends to municipalities to finance public infrastructure and welfare services.

Resilience scores

Technology vendors

Insights

Last updated 2026-09-12 · revision 3

12 direct vendors, 181 subvendors

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Subvendors by controlling owner country (sample)

Compliance

11 in-scope frameworks identified; showing 3.

EU Taxonomy — Evidence found

As a large financial market participant in the EEA, KBN is required to disclose how and to what extent its activities, particularly its lending portfolio, are aligned with the EU Taxonomy's definition of environmentally sustainable activities.

Evidence: https://www.kbn.com/en/sustainability/understanding-climate-change/the-eu-taxonomy/, https://ec.europa.eu/sustainable-finance-taxonomy/, https://www.kbn.com/en/sustainability/our-sustainability-work/sustainability-reporting/, https://www.spglobal.com/ratings/en/regulatory/article/-/view/type/HTML/id/3476190, https://www.kbn.com/globalassets/dokumenter/finansielle-rapporter/arsrapport/annual-report-2023.xhtml, https://www.kbn.com/globalassets/dokumenter/funding/kbn-fact-sheet_march2022.pdf

CRR — Evidence found

As a systemically important financial institution in Norway (an EEA member), KBN is subject to the EU's Capital Requirements Regulation and Directive, implemented into Norwegian law.

Evidence: https://www.kbn.com/globalassets/dokumenter/finansielle-rapporter/arsrapport/kbn-annual-report-2024.xhtml, https://www.finanstilsynet.no/contentassets/fb92d79463e74020b37117172d9d122e/advice-on-systemically-important-institutions.pdf, https://www.norges-bank.no/contentassets/13b29a47554c4816b21dd81371915ed2/staff-memo-8_2021-eng.pdf?v=29112021131212, https://www.kbn.com/en/investor/financial-reports/, https://www.kbn.com/en/about-us/publications/, https://www.finanstilsynet.no/en/publications/annual-report/annual-report-2023/reports-from-the-supervised-sectors-for-2023/banks-and-other-financing-activity/

SIFI requirements — Evidence found

The Norwegian Ministry of Finance, on the advice of Finanstilsynet, has officially designated Kommunalbanken AS as a systemically important institution in Norway.

Evidence: https://www.kbn.com/en/investor/fact-sheet/faq/, https://www.finanstilsynet.no/contentassets/fb92d79463e74020b37117172d9d122e/advice-on-systemically-important-institutions.pdf, https://www.regjeringen.no/en/whats-new/identification-of-systemically-important-institutions/id3077613/, https://www.finanstilsynet.no/en/publications/annual-report/annual-report-2023/reports-from-the-supervised-sectors-for-2023/banks-and-other-financing-activity/, https://www.finanstilsynet.no/en/publications/annual-report/annual-report-2020/reports-from-the-supervised-sectors-for-2020/banks-and-other-financing-activity/, https://www.kbn.com/contentassets/3499dde0c6e042ad83ec07f8dde2316c/registration-document---kommunalbanken-as---dated-13.05.2024.pdf

Financials

Three-year financials

Financial Resilience Score: 9/10

Kommunalbanken AS demonstrates exceptional financial resilience anchored by its 100% ownership by the Kingdom of Norway, giving it sovereign-equivalent credit standing with AAA/Aaa ratings from S&P and Moody's. Its lending book is virtually risk-free from a credit perspective because Norwegian municipalities cannot go bankrupt under Norwegian law, resulting in historically negligible loss provisions. The bank maintains very strong capital ratios, with CET1 typically at 18-20%+ and a leverage ratio comfortably above minimum requirements. KBN's funding profile is diversified across international debt markets in multiple currencies (USD, EUR, GBP, AUD, JPY) with matched-tenor debt hedged via derivatives, and it operates one of Europe's oldest green bond programmes (since 2010). Net interest income has grown meaningfully over the past three years, driven by higher Norwegian policy rates lifting margins on its floating-rate loan book and liquidity portfolio yields. Equity has grown consistently through retained earnings. Key risk considerations include single-sector and single-country concentration (Norwegian local government), IFRS earnings volatility from mark-to-market on derivatives and own debt, and political/regulatory dependency on state ownership and municipal borrowing legislation. Competitive pressure from KLP Kommunekreditt and commercial banks could compress lending margins over time. Overall, however, the combination of sovereign backing, low credit risk, strong capitalization, and stable core earnings supports a very high resilience score.

Key strengths: 100% Norwegian state ownership providing sovereign-equivalent credit standing, AAA/Aaa credit ratings from S&P and Moody's, Very low credit risk - Norwegian municipalities cannot go bankrupt by law, Strong CET1 capital ratio typically 18-20%+, Deep, diversified international multi-currency funding access, Pioneer in green bonds since 2010, Stable, predictable core earnings from floating-rate loan book, Consistent profitability across 2015-2024 on core-earnings basis

Risk factors: Concentration risk: single-sector (Norwegian local government) and single-country exposure, IFRS earnings volatility from mark-to-market on funding derivatives and own debt, Interest-rate and basis risk from cross-currency funding hedged into NOK floating, Political/regulatory risk tied to continued state ownership and municipal borrowing legislation, Competitive pressure from KLP Kommunekreditt and commercial banks compressing lending margins, Evolving CRR/CRD capital requirements requiring ongoing capital retention

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