Since 1987 savings banks have been entitled to bring in external equity by issuing primary capital certificates (PCCs). PCCs differ from shares in that they do not give their holders ownership over the bank´s entire equity capital. Moreover, PCC holders have limited influence in the bank´s highest body. 25 savings banks, including several of the largest ones, have issued PCCs.

In 2002 savings banks were given the option of converting to limited liability savings banks. A converted bank is essentially regulated by the same provisions as a commercial bank. In order for the converted entity to call itself a savings bank the original capital must be converted into a foundation which owns more than 10% of the bank´s share capital. So far only one bank, the largest savings bank, has converted itself into a limited liability savings bank. This bank has subsequently merged with the Norway´s largest commercial bank to form DnB NOR Bank ASA. The new entity, which is the country´s decidedly largest bank, is legally speaking a savings bank.

Social and welfare aims
 

Neither the Savings Banks Act nor the savings banks´ articles of association impose any obligations to pursue specific social or welfare aims. Savings banks are expected to fulfil their commitments towards the communities in which they operate by carrying out prudent banking.

Activities
 

There is full equality under the law between savings banks and commercial banks in terms of what business they may engage in. This applies both to business conducted over the individual bank´s own books and via subsidiaries. All major savings banks offer a full range of services. Many savings banks have reinforced their full-service character by setting up subsidiaries in bank-related activities, for instance insurance, money, capital and real estate brokerage, leasing, factoring, etc.

Regional operation, branches
 

The Norwegian savings banks are local institutions concentrating their activities in local districts or regions, with a network of branches covering their business areas very effectively.

Guarantee systems in general
 

Act No. 75 of 6 December 1996 on Guarantee Schemes for Banks and Public Administration, etc (Guarantee Schemes Act) contains the legal provisions governing the two guarantee funds operating in the banking sector, one covering the savings banks and the other covering the commercial banks.

All savings banks in Norway are obliged to be members of the Savings Banks Guarantee Fund, and each bank pays an annual contribution to the Fund according to criteria laid down in the provisions.

Each guarantee fund will cover losses incurred by depositors and other financial institutions on their deposits, limited to a maximum of NOK 2 million per depositor. The guarantee fund can also provide a member bank with financial support to enable it to meet its commitments.

The authorities are likely to recommend an amalgamation of the Commercial Banks´ Guarantee Fund and the Savings Banks´ Guarantee Fund in 2004.