Change in the Organisation of the Supply of Notes and Coins – Establishment of the Limited Company Norsk Kontantservice AS (NOKAS)

During the past two years, major changes have been made in the organisation of the supply of notes and coins in Norway. The changes are a result of developments in the distribution network since the late 1980s, which have included modifications in the transport system and new delivery procedures. As a result, Norges Bank was increasingly performing commercial services for banks in connection with activities relating to Norges Bank’s responsibility for issuing notes and coins. At the same time, the activities of the Bank’s regional branches increasingly concentrated on the distribution and processing of notes and coins. In due course, it proved necessary to distinguish more clearly between central bank tasks ensuing from Norges Bank’s statutory responsibility for issuing notes and coins, and operations of a more commercial nature. As a result, a separate company was established in the summer of 2001 – Norsk Kontantservice AS (NOKAS), with Norges Bank and private banks as owners. This company performs both central bank tasks for Norges Bank and other cash processing services for private banks. This article provides a more detailed description of the changes and the reasons for these changes

Destruction of Banknotes Outside the Central Bank

Developments in Norges Bank’s cash handling services for banks in the 1980s and 1990s led to a need for a clearer distinction between central bank responsibilities and commercial services for banks. As a result, Norsk Kontantservice AS (NOKAS) was established in 2001. This raised the important question of whether the destruction of banknotes could be delegated to an external company, which Norges Bank decided to do. To our knowledge, no other central bank has outsourced this task to the same degree. This article presents the considerations taken into account, the system established to make adequate provision for security, and experience so far

Changes in Norges Bank’s Role and Activities in Cash Supply and Distribution

This Staff Memo is a slightly adjusted version of an article published in Norwegian in 2010. Due to great interest of colleagues from other central banks, we present the changes in the Norwegian cash cycle in English.Norges Bank has made considerable changes in its role and activities in cash supply and distribution since the turn of the century, with the aim of enhancing efficiency in cash distribution and the payment system as a whole. Norges Bank’s cash distribution responsibilities have been clarified, and the Bank has assumed a defined role as wholesaler. In addition, Norges Bank has outsourced note and coin processing services to a considerable extent compared with other central banks and currently relies on purchasing these services from external operators. This article presents the changes and reviews the assessments and reasoning behind the choices made in the light of Norges Bank’s responsibilities. The final section examines the consequences of the changes. The overall assessment is that the changes have increased efficiency in the cash supply and enhanced efficiency in the payment system as a whole

Endringer i organiseringen av seddel- og myntforsyningen

I løpet av de siste to årene er det gjennomført store endringer i organiseringen av seddel- og myntforsyningen i Norge. I 2001 ble det etablert et eget selskap (Norsk Kontantservice AS), som nå utfører de oppgavene Norges Banks distriktsavdelinger tidligere hadde med sirkulasjon av kontante betalingsmidler. Artikkelen beskriver endringene og redegjør for bakgrunnen for dem

Seddeldestruksjon utenfor sentralbanken

Norsk Kontantservice AS ble etablert i 2001, og har i tillegg til seddelforsyning og andre tjenester for bankene også fått i oppdrag å destruere utslitte sedler for Norges Bank. Vi er ikke kjent med at andre sentralbanker har satt ut denne oppgaven i samme grad. Her presenteres vurderinger som ble gjort omkring sikkerheten, systemet som er etablert, og erfaringer så langt

Norges Bank's Role in Cash Distribution

During the past few years, Norges Bank has made major changes in its cash operations. These changes have been designed to adjust and clarify the division of responsibility between the various parties involved in cash distribution. Tasks have been allocated in line with this purpose. Norges Bank’s overriding consideration has been to adapt the central bank’s cash policy so as to increase the efficiency of the payment system. In practice, this involved changes which have been implemented in three stages. 1) discontinuation of commercial services 2) changes in terms for banks’ cash deposits in and withdrawals from Norges Bank and 3) changes in the depot structure and introduction of compensation in the form of interest for cash held in banks’ own depots. The result of these changes is that the central bank has assumed a more clearly defined role as wholesaler and banks have taken more responsibility for the redistribution of cash amongst themselves. Moreover, Norges Bank has assessed the organisation of the services and tasks for which the central bank is responsible. The practical consequence of these assessments is that Norges Bank’s cash operations are based largely on outsourcing. This article presents key assessments of the role Norges Bank wishes to have in cash distribution, as well as information about the changes that have been implemented in the period 2001-2005

Endringer i organiseringen av seddel- og myntforsyningen

I løpet av de siste to årene er det gjennomført store endringer i organiseringen av seddel- og myntforsyningen i Norge. I 2001 ble det etablert et eget selskap (Norsk Kontantservice AS), som nå utfører de oppgavene Norges Banks distriktsavdelinger tidligere hadde med sirkulasjon av kontante betalingsmidler. Artikkelen beskriver endringene og redegjør for bakgrunnen for dem

Change in the Organisation of the Supply of Notes and Coins – Establishment of the Limited Company Norsk Kontantservice AS (NOKAS)

During the past two years, major changes have been made in the organisation of the supply of notes and coins in Norway. The changes are a result of developments in the distribution network since the late 1980s, which have included modifications in the transport system and new delivery procedures. As a result, Norges Bank was increasingly performing commercial services for banks in connection with activities relating to Norges Bank’s responsibility for issuing notes and coins. At the same time, the activities of the Bank’s regional branches increasingly concentrated on the distribution and processing of notes and coins. In due course, it proved necessary to distinguish more clearly between central bank tasks ensuing from Norges Bank’s statutory responsibility for issuing notes and coins, and operations of a more commercial nature. As a result, a separate company was established in the summer of 2001 – Norsk Kontantservice AS (NOKAS), with Norges Bank and private banks as owners. This company performs both central bank tasks for Norges Bank and other cash processing services for private banks. This article provides a more detailed description of the changes and the reasons for these changes