Nowa - the Norwegian Overnight Weighted Average

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Nowa - the Norwegian Overnight Weighted Average

NOWA - the Norwegian Overnight Weighted Average - is defined as a weighted average of interest rates set in agreements concluded by banks, either directly or via a broker, for unsecured loans in NOK, where the loan is paid out on the same day and repayment occurs on the following banking day. The Nowa rules are adopted by Finance Norway and the calculation agent is Norges Bank (the Norwegian central bank). 

Norges Bank take over as adminstrator

Norges Bank (the central bank of Norway) and Finance Norway have agreed that Norges Bank will take over as administrator of Nowa (Norwegian Overnight Weighted Average) from 1. January 2020.

The rules

The rules describes what the different interest rates represents, the requirements laid on the suppliers of data (the panel banks) and how the rates are to be calculated and published.

Nowa shall be calculated as nominal annual rates for the actual number of days in the year ahead (365 or 366). The percentage return over the term is thus calculated by dividing the interest rate by the actual number of days in the year ahead and multiplying it by the actual number of days to maturity.

Steering group

There is established a steering group for Nowa to monitor and evaluate the rules, and make recommendations on approvals as panel banks. Panel banks are approved by Finance Norway.

The panel banks are entitled, but not obliged, to be represented in the steering group.

The Nowa rules entered into force on 26th of September 2011. The rules were last revised on 27 February 2019, entering into force on 1th of April 2019. The recent amendments concerns the time of reporting and must be seen in relation to previous adjustments enabling Nowa to be published already on the same day as the trades which Nowa shall reflect are carried out. Furthermore, traded volume will be published also on days where Nowa is estimated.

Panel banks

  • SpareBank 1 Østlandet
  • DNB Bank ASA
  • Danske Bank
  • Handelsbanken
  • Nordea
  • SEB AB
  • Sparebanken Vest
  • SpareBank 1 SMN
  • SpareBank 1 SR-Bank
  • SpareBank 1 Nord-Norge
  • Swedbank