OSLO, Aug 31 (Reuters) - Norway’s banking regulator proposed mandatory rules for consumer loans and credit cards on Friday, which would replace the looser guidelines currently in place.
The long-awaited regulation is intended to better protect banks from future losses, while at the same time preventing individuals from borrowing unsustainable amounts, the FSA said.
“The guidelines which the FSA made last year have not sufficiently been followed by banks and other financial corporations. The FSA thus proposes to make the guidelines mandatory,” it added.
A final decision will be made by Norway’s finance ministry. (Reporting by Terje Solsvik, editing by Ole Petter Skonnord)