Kommunalbanken Norway - KBN - is a AAA/Aaa rated government funding agency
owned 100% by the Kingdom of Norway.
Established by an act of Parliament in 1926 as a state administrative body, KBN gained its current status and structure through a conversion act in 1999. KBN is a direct continuation of its predecessor Norges Kommunalbank and has for 81 years been the main provider of credit to the local government sector in Norway.
Today, KBN is defined as a state instrumentality serving a public policy function of providing low cost funding to Norwegian municipalities. The agency’s mandate also includes promoting competition in the market, thereby facilitating the efficient provision of public services in Norway. KBN’s operations are strictly regulated and the agency may only lend to Norwegian local governments, counties and inter-municipal companies against a guarantee.
KBN is the largest provider of credit to local authorities in Norway, commanding a market share of approximately 45%. More than 95% per cent of municipalities and counties have loans with KBN.